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QUEBEC CITY, May 22, 2013 /CNW Telbec/ - Cominar Real Estate Investment Trust
("Cominar") (TSX: CUF.UN) announced today that it has sold its interest in
Dyne Holdings Limited ("Dyne") to Homburg International Limited. Dyne was an
indirect subsidiary of Canmarc Real Estate Investment Trust ("Canmarc"),
acquired by Cominar in 2012. The sale was completed for nominal consideration
and the reimbursement of certain shareholder advances. This transaction will
allow Cominar to remove Dyne's liabilities from its balance sheet.
Dyne's assets include the Holman Grand Hotel (the "Hotel"), an 80 room
boutique style hotel located in Charlottetown, Prince Edward Island. Dyne is
indebted to the Prince Edward Island Century 2000 Fund Inc. (the "Century
Fund") under a secured loan in the amount of $14.7 million contracted by Dyne
in November 2008 to finance the construction of the Hotel (the "Hotel Loan").
The Hotel Loan was guaranteed by Homburg Invest Inc. ("HII"). The Hotel was
acquired from Dyne by HII in April of 2010, while it was still under
construction. The Hotel Loan was thereafter assumed by HII, which agreed to
indemnify Dyne in connection with same. However, Dyne was never released from
its obligations under the Hotel Loan, and remained liable for the debt. Dyne's
assets also include certain other commercial properties known as the
Confederation Court Complex (160,000 square feet) including The National Bank
Tower, BDC Place (64,000 square feet) and The Homburg Financial Tower (34,000
square feet) located in Charlottetown, Prince Edward Island which have been
given as security for other borrowings of Dyne aggregating $17.9 million.
HII filed for protection under the Companies' Creditors Arrangement Act (the
"CCAA") on September 9, 2011. On November 30, 2012, HII terminated the ground
lease entered into in connection with the Hotel and the ownership of the Hotel
reverted to Dyne. The Hotel is presently closed.
In addition to the Hotel Loan, various claims are being asserted in connection
with the construction of the Hotel, including against Dyne.
Construction-related trade payables alleged to be secured by liens on the
Hotel total approximately $4.1 million.
Losses with respect to Dyne's investment were previously accounted for in
Mr. Michel Dallaire, Cominar's President and Chief Executive Officer, said:
"We are pleased with this outcome and wish the best for the Homburg
International Group and the Charlottetown community."
PROFILE as at May 22, 2013
Cominar is the third largest diversified real estate investment trust in
Canada and currently remains the largest commercial property owner in the
Province of Québec. Cominar owns a real estate portfolio of 498 high-quality
properties, consisting of 121 office, 156 retail and 221 industrial and
mixed-use buildings with a leasable area of approximately 36.8 million square
feet spread out across Québec, Ontario, the Atlantic Provinces and Western
Canada. Cominar's objectives are to pay growing cash distributions to
unitholders and to maximize unitholder value by way of integrated, proactive
management and the expansion of its portfolio.
This press release may contain forward-looking statements with respect to
Cominar and its operations, strategy, financial performance and financial
condition. These statements generally can be identified by the use of
forward-looking words such as "may", "will", "expect", "estimate",
"anticipate", "intend", "believe" or "continue" or the negative thereof or
similar variations. The actual results and performance of Cominar discussed
herein could differ materially from those expressed or implied by such
statements. Such statements are qualified in their entirety by the inherent
risks and uncertainties surrounding future expectations. Some important
factors that could cause actual results to differ materially from expectations
include, among other things, general economic and market factors, competition,
changes in government regulation and the factors described under "Risk
Factors" in the Annual Information Form of Cominar. The cautionary statements
qualify all forward-looking statements attributable to Cominar and persons
acting on its behalf. Unless otherwise stated, all forward-looking statements
speak only as of the date of this press release.
Mr. Michel Dallaire, P.Eng. President and Chief Executive Officer, Cominar
Real Estate Investment Trust (418) 681-8151
Mr. Sylvain Cossette Executive Vice President and Chief Operating Officer,
Cominar Real Estate Investment Trust (418) 681-6300 ext. 2245
Mr. Michel Berthelot Executive Vice President and Chief Financial Officer,
Cominar Real Estate Investment Trust (418) 681-6300 ext. 2266
SOURCE: COMINAR REAL ESTATE INVESTMENT TRUST
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CO: COMINAR REAL ESTATE INVESTMENT TRUST
ST: Prince Edward Island
NI: REL REL FIN MNA
-0- May/22/2013 21:42 GMT
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