Business & Finance
Business and Finance
Business and Finance
Tue, July 26, 2011 Huntingdon REIT Announces Commencement Of Substantial Issuer Bid
RICHMOND, BC, July 26, 2011 /CNW/ - Huntingdon Real Estate Investment Trust (the "Trust" or "HREIT") (TSX: HNT.UN) announced today that it has formally commenced its previously announced substantial issuer bid (the "Offer") pursuant to which the Trust has offered to repurchase for cancellation up to Cdn$5.5 million in value of its outstanding trust units (the "Units") from unitholders. The Offer will proceed by way of a modified "Dutch Auction" and the range of Offer prices will be Cdn$6.80 to Cdn$7.50 per Unit. The maximum number of Units that may be repurchased by the Trust under the Offer is 808,823 Units. The Offer will expire at 5:00 p.m. (Toronto time) on August 31, 2011 unless the Offer is extended, varied or withdrawn by HREIT.
The Trust will determine a single price per Unit (the "Purchase Price"), based on the number of Units tendered and the prices indicated by tendering unitholders, which will be the price that enables the Trust to purchase up to Cdn$5.5 million of Units within the range specified above. Unitholders will receive the Purchase Price, payable in cash, for Units tendered at prices equal to or lower than the Purchase Price, subject to any applicable withholding taxes. All Units tendered at prices higher than the Purchase Price will be returned to unitholders. The Trust will purchase all Units at the Purchase Price, even if unitholders have indicated a lower price. If the aggregate purchase for Units properly deposited at or below the Purchase Price would exceed Cdn$5.5 million, such Units will be purchased on a pro rata basis (other than odd lot deposits), subject to the terms of the Offer.
The formal offer to purchase and issuer bid circular, together with the related letter of transmittal and notice of guaranteed delivery (the "Offer Documents"), containing the terms and conditions of the Offer and instructions for tendering Units are in the process of being mailed to unitholders and will be filed with the applicable securities regulators and available on SEDAR at [ www.sedar.com ].
Neither HREIT nor its board of trustees makes any recommendation to unitholders as to whether to tender or refrain from tendering their trust units to the Offer. Unitholders are strongly urged to read the Offer Documents carefully and in their entirety, and to consult their own financial, tax and legal advisors and to make their own decisions whether to tender or refrain from tendering their trust units to the Offer and, if so, how many trust units to tender and at what price or prices.
HREIT is a real estate investment trust which is listed on the Toronto Stock Exchange under the symbols HNT.UN (Trust Units) and HNT.DB.C (Series C Convertible Debentures). HREIT owns, directly or indirectly, 77 income producing office, industrial, retail and standalone parking lot properties, including the aviation-related facilities at five of Canada's leading international airports that have a total gross leasable area of 5.5 million square feet; and two land parcels held for development, with other development and expansion opportunities within the portfolio.
Forward‐Looking Information:
Certain statements contained in this press release may constitute forward‐looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking statements. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of our tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and rate fluctuations. Forward‐looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The forward‐looking statements are subject to risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations including, but not limited to, the risks detailed from time to time in HREIT's filings with Canadian provincial securities regulators, including its most recent annual information form and management's discussion and analysis. HREIT cautions you not to place undue reliance upon any such forward‐looking statements, which speak only as of the date they are made. Forward‐looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and HREIT does not undertake any obligation to update forward‐looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by applicable law.
The Toronto Stock Exchange has not reviewed nor approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.
