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Investment

KEYreit Board Recommends Unitholders REJECT the Unsolicited Huntingdon Partial Offer and Announces Special Meeting of Unitholders

KEYreit Board Recommends Unitholders REJECT the Unsolicited Huntingdon Partial Offer and Announces Special Meeting of Unitholders.

“TORONTO, Feb. 15, 2013 /CNW/ – KEYreit (TSX: KRE.UN) announced today its board of trustees, on the recommendation of its special committee, unanimously recommends that unitholders REJECT the unsolicited partial offer by Huntingdon Capital Corp. If successful, the unsolicited partial offer would give Huntingdon effective control of KEYreit.

“The board strongly believes the unsolicited partial offer is wholly inadequate, coercive, highly opportunistic and does not represent fair value for your units,” said Donald Biback, Chairman of the board of trustees. “The partial offer fails to provide unitholders with an appropriate control premium for the units purchased, and provides no premium for units not purchased. It significantly undervalues KEYreit’s assets and businesses, which have a proven track record of creating value for unitholders. We urge unitholders to reject Huntingdon’s wholly inadequate partial offer.”

The board of trustees and management, representing 17% of KEYreit’s issued and outstanding units, have stated that they will not tender to Huntingdon’s coercive unsolicited partial offer.”

Courtesy Canada Newswire

February 18, 2013by david.taylor@colliers.com
Investment, Office, Retail

Globe & Mail on REITS – “Is it too late to make money on REITs?

“Most Canadians don’t need to be told the country’s real estate market has been a big money-maker over the past several years.

But of course there’s more to real estate than houses and condos. Retail, office and rental properties are also a huge part of the real estate scene – and these sectors have also been enjoying nearly a decade of strong growth. Not many individuals manage to participate directly in the sector – but investors have been able to tap into its growth through REITs – real estate investment trusts.

These investment vehicles own commercial real estate properties and are required by law to pay out a fixed portion of their taxable income to shareholders. They trade like individual stocks and typically pay a yield of 5 to10 per cent to their investors.

For the past few years REITs have been one of the best-performing investment classes in Canada. The number of firms on the S&P TSX REIT Index has more than tripled in the past four years – and that doesn’t take into account the income payouts the REIT holders have enjoyed.”

To view the full article click HERE.

February 18, 2013by david.taylor@colliers.com

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