Melcor REIT Announces Unitholder Approval for Significant Arrangement
EDMONTON, Alberta — Melcor Real Estate Investment Trust (“Melcor REIT” or the “REIT”) is thrilled to share that during a special meeting held for the holders of its units (the “Units”) and special voting units (the “SVUs”), the holders of Voting Units came together to overwhelmingly endorse a crucial plan of arrangement. This plan revolves around the acquisition of Melcor’s unowned equity interest, which comprises about 45% in Melcor REIT Limited Partnership (the “REIT LP”). At the heart of this arrangement is a significant cash transaction set at $5.50 per Class A LP Unit, which translates to roughly 13.0 million units being acquired.
Special Resolution Approved by Unitholders
The collective will of Voting Unitholders granted the necessary approval for this transaction, which required at least two key voting conditions. First, a minimum of 66?% of the votes cast by Voting Unitholders had to be in favor, and second, a simple majority of those present or represented needed to approve it. Comments from the chair indicated a strong confidence in the result, which saw an impressive turnout with voting representing 81.814% of the outstanding Voting Units.
Next Steps for the Arrangement
The REIT is moving forward with plans to seek a final court order from the Court of King’s Bench of Alberta to approve this arrangement shortly. The anticipated date for this court proceeding is set for April 16, 2025. This arrangement is contingent upon meeting various customary closing conditions, but should all conditions be satisfied, the deal is likely to finalize by April 23, 2025. Post-completion, units of the REIT will be delisted from the Toronto Stock Exchange, indicating a pivotal shift in its operational framework.
Unitholder Instructions and Future Investements
For those who are registered unitholders, it is essential to complete the enclosed Letter of Transmittal included with the management information circular. This document, along with other necessary documents, should be sent to Odyssey Trust Company, the designated depositary for processing. Unitholders that possess Units through intermediaries will need to reach out to those intermediaries for instructions on receiving their entitlements. Melcor REIT remains poised for additional expansion and opportunities across Western Canada, as it continues in its mission to enhance shareholder value through effective management of quality income-generating properties.
About Melcor REIT
Melcor REIT operates as an unincorporated, open-ended real estate investment trust. Its core business encompasses owning, acquiring, managing, and leasing a diverse array of income-generating properties, such as retail and office spaces, primarily in western Canada. Currently, Melcor REIT's robust portfolio is composed of interests in 34 properties, amounting to nearly 2.8 million square feet of gross leasable area located throughout Alberta and in Regina, Saskatchewan.
Contact Information:
Tel: 1.780.945.4795
Email: ir@melcorREIT.ca
Frequently Asked Questions
What was the purpose of the special meeting?
The meeting aimed to secure unitholder approval for a plan of arrangement involving the acquisition of equity interest in Melcor REIT Limited Partnership.
What is the significance of the special resolution?
The special resolution allows the acquisition to proceed, enabling Melcor REIT to enhance its investment strategy and repurchase outstanding units.
When will the arrangement be finalized?
It is expected that the arrangement will complete around April 23, 2025, pending the satisfaction of all required conditions.
How will unitholders be notified about their units?
Registered unitholders will receive a Letter of Transmittal that must be completed and submitted to Odyssey Trust Company for processing their units.
What does the future hold for Melcor REIT?
Melcor REIT aims to continually manage and expand its portfolio of diverse income-generating properties, focusing on delivering value to its investors.
