State of the Units & Property Report:
Q4 2011
Greetings Friends,
We hope 2012 has gotten off to a joyous and fulfilling start for you. For all of us at LEAGUE, we're happy to report that we've had a wonderful beginning to the year. It's our pleasure to share all the good news with you.
Before getting into all the detail, we'd first like to remind you that the next revaluation of IGW REIT units takes place on March 1. We will send out a notice as soon as that process is complete. Right now, the unit value for the Traditional Class IGW REIT stands at $1.050, up from $1.035 in December of 2010. Distributions on all Traditional Units are at 7.5 cents per unit per annum.
A strong ending to 2011...
There was plenty of activity in late 2011 that gave us excellent momentum heading into the New Year. Among the highlights, we successfully raised the minimum investment of $1 million for the Tsawwassen Retail Power Centre Limited Partnership and were able to begin distributions on that investment before the year ended.
The Wesbrooke is another property where we saw significant progress as the year came to a close. Construction work reached some key milestones as the site began to take shape, employment applications started to flood in, and deposits were taken on nearly half of the units - and that was all just from word of mouth because formal marketing efforts are just now getting underway!
We also enjoyed having a prolific feature about LEAGUE in the December edition of Business Edge News. You can read it here: http://league.ca/images/league-in-the-media/Business-Edge-Dec-2011.pdf.
A great start to 2012...
This year got off to a momentous start with special events to commemorate the official groundbreaking for our Colwood Capital City Centre project. This included a press conference on January 23 where we were joined by Carol Hamilton, the Mayor of Colwood, and Allan Cahoon, President of Royal Roads University. We also hosted a luncheon that day in collaboration with Westshore's Chamber of Commerce. These events generated a lot of media interest. Here are links to some of the coverage we invite you to peruse:
At this point, as we describe in a separate article in this edition of Legacy, since the groundbreaking, there has been a lot of interest in the Colwood 11% Secured Promissory Notes but we still do have some available. Please talk with your Member Services Manager if you are interested in this investment opportunity.
On January 18, Partners REIT announced three important events:
- The REIT announced a $20 million equity bought deal that closed on February 8, 2012.
- The REIT announced the court approval of the REIT's acquisition of assets of Norrock Realty Finance Corporation, which closed on February 1, 2012.
- The REIT announced acquisition of five properties in Ontario and one property in Alberta. The properties are:
- Crossing Bridge Square, a 45,800 square-foot open-air centre located in Stittsville, Ontario, just outside Ottawa
- Grand Bend Towne Centre, a 36,100 square-foot retail centre on the shores of Lake Huron
- King George Square, a 67,100 square-foot open-air centre comprised of three buildings on a major thoroughfare in Brantford
- Manning Crossing, a 64,500-square-foot centre in Edmonton
- St. Clair Beach Towne Centre, a 40,100-square foot centre comprised of two buildings located in the Windsor, Ontario suburb of Tecumseh
- Thunder Centre, a 168,000-square-foot power centre in Thunder Bay
All of the properties except Grand Bend, closed on February 16, 2012. Grand Bend is expected to close at a later date.
As of February 1, 2012, IGW REIT LP, through its subsidiary, IGW PUBLIC LP, owns approximately 21% of Partners REIT.
Special Events in February...
This month, we were honoured to take part in two very special occasions - one in Victoria and one in Toronto. On February 7, we participated in a prestigious Vancouver Board of Trade forum looking at values and ethics in the business world. "Doing the right thing" is what we at LEAGUE do all day, every day, so it was a perfect fit for us to share our views, and it was a distinct honour and privilege to share the stage with award-winning author and recipient of the Nobel Peace Prize on behalf of Doctors Without Borders, Dr. James Orbinski, along with some other esteemed panellists.
We also spent some valuable time in Toronto, at our Summit Series, with a thoughtful and candid "Discussion about Growth" at the Fairmont Royal York Hotel on February 9. Brad Simpson offered a great keynote address and their was a stimulating panel discussion with Adam Gant and three other brilliant entrepreneurs.
To top it all off, we had a live Webinar on Valentine's Day, focusing on how RRSPs "love" LEAGUE's IGW REIT. It's very timely as the February 29 RRSP deadline is just around the corner. We'll be providing a lot of important information about the RRSP-eligible IGW REIT.
As for the rest of 2012, we're looking forward to many more special events. We'll let you know as those plans take shape.
In closing...
These are exhilarating times for all of us at LEAGUE, as we tend to so many exceptional projects and investments at varying stages in their development and maturity. We look forward with great anticipation to the remainder of 2012 and beyond, as the coming months and years will be filled with outstanding opportunities for our Member Partners.
What follows is a property-by-property update on the state of every property we manage on your behalf. As always, our Member Services Managers are ready to answer your questions and assist you in any way they can. Just call1.877.772.8836 or click here to have LEAGUE contact you.
State of the Units & Property Report Q4 2011
Part A: IGW REIT Properties
Arbutus Industrial Park -- Parksville, BC
- In accordance with our strategy to replace smaller properties with one property that's larger and easier to manage, this property is listed for sale, and we will consider acceptable offers.
The Lindholm Building -- Victoria, BC
- Leasing activities continue.
Tiffany Suites -- Victoria, BC
- Suites continue to be upgraded as per our original plan.
- In accordance with our strategy to replace smaller properties with one property that's larger and easier to manage, this property is listed for sale, and we will consider acceptable offers.
Tyee Plaza - Campbell River, BC
- Leasing activities continue on in-line vacancies and finding tenants to replace the Loblaws store.
Fort Saskatchewan Industrial Park -- Fort Saskatchewan, AB
Londondale Shopping Centre -- Edmonton, AB
- Re-merchandising and renovations are complete and the centre is now 100% leased.
Market Square -- Fort Saskatchewan, AB
- Planning has begun for constructing an additional 6,000 sq. ft. pad for new retail space. A construction schedule will be determined once we have sufficient pre-leasing in place.
- Leasing activities continue.
Sobey's Centre (formerly Camrose IGA Garden Market) -- Camrose, AB
- While plans and permits remain in place for constructing 10,000 additional sq. ft. of commercial/retail space, we are also considering severing the freestanding pad site and selling it off.
Stettler Town Mall -- Stettler, AB
- The mall's remaining vacant space is being marketed for lease.
- In accordance with our strategy to replace smaller properties with one property that's larger and easier to manage, this property is listed for sale, and we will consider acceptable offers.
Westlock Shopping Centre -- Westlock, AB
- Negotiation is underway to amend Bargain Shop's lease so space can be freed for the construction of new storefronts, which will be attractive to customers. This plan has been approved by the City and a development permit granted. Our preference is to sell the property at an appropriate price. It is currently listed for sale.
Vinet's Village Shopping Centre -- Vegreville, AB
- The centre is 92% leased. Leasing activity to fill the remaining space continues.
- In accordance with our strategy to replace smaller properties with one property that's larger and easier to manage, this property is listed for sale, and we will consider acceptable offers.
Dodson Plaza -- Drayton Valley, AB
- We're reviewing the opportunity to add new commercial pads to attract more profitable tenants. These would replace the existing gas bar.
- Rexall Drugs is finalizing their expansion to double their space.
Westwinds Shopping Centre -- Taber, AB
- The centre is 100% leased.
- We have begun to pre-lease space for our planned 14,000 sq. ft. expansion.
Carlton Court -- Prince Albert, SK
- Leasing activities continue for the one small space remaining.
473 Albert Office Tower -- Ottawa, ON
- BOMA (http://www.boma.org) has approved this building's "Go Green" environmental certification.
- We accepted an Offer to Lease from the federal government for the entire 8th floor and renovations have begun. Other leasing negotiations with the federal government continue.
Merivale Business Park -- Ottawa, ON
- Leasing activities continue.
- The facade upgrade is slated to begin this spring.
Seaway Village -- Cornwall, ON
- In accordance with our strategy to replace smaller properties with one property that's larger and easier to manage, this property is listed for sale, and we will consider acceptable offers.
Partners REIT (TSX-V: PAR.UN)
- IGW REIT, through a subsidiary, owns approximately 21% of Partners REIT.
- For more information on Partners REIT, visit: www.partnersreit.com.
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