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 Posté le: Lun Sep 30, 2013 5:51 pm Sujet du message: Boardroom battle erupts at Partners REIT |
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{Boardroom battle erupts at Partners REIT}
Partners REIT vice-chairman Adam Gant, who was CEO until last month,[url=http://www.moncler-sale.org]moncler outlet[/url], is leading an attempt to oust four independent trusteesBy Glen KorstromTue May 21, 2013 12:01am PSTExecutives at Victoria-based Partners REIT (TSX:PAR.UN) aim to oust four independent trustees and replace them with new board representatives in a June 4 unit-holder vote.The trustees, in return, plan to replace the company’s entire management team.Each side in the dispute accuses the other of using smoke-and-mirror tactics that mask true intentions. Tension rose last month when executives told the board that the company needed trustees that have experience guiding multi billion-dollar shopping centre developments.A week later,[url=http://www.moncler-sale.org]moncler on sale[/url], the executives added that they could not support the re-election of the company’s chairman, Louis Maroun, because he owns a substantial investment in Summit Industrial Income REIT.They’re also concerned that Maroun is on the board of trustees of Summit – which,[url=http://www.moncler-sale.org]moncler down jackets[/url],[url=http://www.moncler-sale.org]discount moncler jackets[/url], they claim, competes for capital with Partners.“That is such a phenomenal red herring,” Partners trustee John van Haastrecht told Business in Vancouver. “There’s absolutely no conflict at all. Summit buys industrial properties. Partners owns retail shopping centres in secondary markets that are mostly food-store anchored.”Van Haastrecht is also on the Summit board of trustees and is one of the Partners trustees the executives want to replace.He, Maroun and the other trustees’ response to the executives’ plotting is to cancel the management contract that Partners has with them.Unlike companies that directly hire executives, Partners’ strategy has been to outsource its management to LAPP Global Asset Management Corp. (LAPP), a subsidiary of IGW Public LP, which owns 14.7% of Partners.Outsourcing management is common among smaller REITs because it is cheaper than hiring an in-house CEO, CFO and other executives.Partners, however,[url=http://www.moncler-sale.org]moncler sale[/url], has grown rapidly thanks to the REIT sector outperforming the TSX S&P Composite Index in each of the past four years.The result, Partners’ trustees say, is that the company is now large enough to afford internally hired executives.Partners owns about $600 million worth of real estate, which is more than quadruple the value of what it owned two years ago.IGW wants LAPP to continue to collect annual fees for looking after Partners’ properties. Partners also pays LAPP a 0.5% fee each time it acquires properties.Last week, Partners closed a deal to buy two retail centres in metropolitan Montreal for $45.9 million (see sidebar). LAPP’s acquisition fee was $229,500.“With an internalized group, we wouldn’t have to pay that fee,” van Haastrecht said.His other concern with LAPP relates to what he called attempts to fold IGW assets into Partners – transactions he believes would have devalued Partners’ units. The trustees therefore nixed those transactions.Adam Gant, who was Partners’ CEO until last month and is now vice-chairman,[url=http://www.moncler-sale.org]moncler sale[/url], is leading the boardroom revolt on behalf of the LAPP executives.“The trustees are using the issue of internalizing management as a smokescreen. It’s the one issue that they can bring up that makes it look like they’re doing something in the interest of unit-holders.”Gant added that the net result of internalizing management will cost the company more than the $2.6 million spent in 2012 to contract management to LAPP.When the trustees announced plans to internalize management earlier this month,[url=http://www.moncler-sale.org]moncler outlet[/url], Partners’ units traded for $7.86. Unit prices then fell more than 5% to $7.44 last week.Partners REIT acquires two Montreal retail centres for $46 millionPartners REIT announced May 13 that it spent $45.9 million to acquire two retail centres in metropolitan Montreal.The two centres combine to add 169,932 square feet of gross leasable area to the REIT.Partners financed the purchase with $27.6 million in new mortgages with a weighted average interest rate of 3.75%. The balance was paid in cash.One of the acquisitions is Marcel-Laurin, a new 120,[url=http://www.moncler-sale.org]moncler on sale[/url],566-square-foot retail centre, anchored by a Metro grocery store and a Brunet Pharmacy with no scheduled lease rollover until 2020. Marcel-Laurin has a prominent location in a retail area of Montreal suburb Saint Laurent.Partners’ second acquisition is the Repentigny Shopping Centre, a 49,[url=http://www.moncler-sale.org]discount moncler jackets[/url],366-square-foot retail centre in Montreal, anchored by a Familiprix, Dollarama and Banque Nationale du Canada.“The acquisition [reflects] the strategy of Partners REIT of acquiring high quality, necessity-based and stable properties which are accretive and which provide unit holders with long-term and defensible cash flow,” said Edward Boomer,[url=http://www.moncler-sale.org]moncler down jackets[/url], chief investment officer at Partners.Tags: Adam Gant, interest rate, mortgage, real estate, retail
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