Partners Real Estate Investment Trust signed a deal to divest 11 retail properties in Quebec, Canada, for net proceeds of about C$65 million after its shareholders approved the sale of all its assets or the liquidation of the REIT.
The agreement is anticipated to close in the second quarter of 2019, subject to the completion of satisfactory due diligence by the buyer and certain customary closing conditions, among others.
Following completion of the disposal, the REIT's Canadian portfolio will comprise 11 retail properties in Ontario and one in Manitoba, encompassing total leasable space of 623,000 square feet. The 12 properties were valued at roughly C$120 million as at Sept. 30, 2018.
The company's board will either sell the remaining assets or the REIT itself, according to a release. Partners REIT noted that the realizable value of the properties would be lower due to the negative market conditions in Ontario.
The board will also evaluate the company's current normal monthly distribution of 1.5 Canadian cents per unit to assess whether the distribution amount should be lowered or discontinued in respect to the smaller size of Partners REIT's remaining portfolio, as well as other factors.