Melcor REIT announces execution of Amended and Restated Asset Management and Property Management Agreements with Melcor Developments Ltd.
EDMONTON, Alberta, May 26, 2022 (GLOBE NEWSWIRE) —
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Melcor Real Estate Investment Trust (TSX:MR.UN) (the “REIT”) announced today that it entered into amended and restated asset management and property management agreements with Melcor Developments Ltd. (“Melcor”). Since Melcor REIT’s IPO in May 2013, Melcor has provided asset management and property management services to Melcor REIT.
The Asset Management Agreement was amended to give to Melcor REIT the right to terminate such agreement on one year’s prior written notice (or payment in lieu thereof) if a majority of the independent trustees (i) determine that it is in the best interest of the REIT to internalize asset management services; or (ii) are not satisfied with the performance by Melcor of its duties under such agreement.
The Property Management Agreement was amended to give to the REIT the right to terminate such agreement on one year’s prior written notice (or payment in lieu thereof) if a majority of the independent trustees (i) determine that it is in the best interest of the REIT to internalize property management services; or (ii) are not satisfied with the performance by Melcor Developments of its duties under the agreement.
The lease fee structure in the Property Management Agreement was also amended to provide that effective January 1, 2022: (i) lease fees would only be paid to Melcor for transactions in respect of which a third party leasing agent was not engaged; and (ii) lease fees payable to Melcor would represent current market terms in each particular market within which leasing services are provided to the REIT by Melcor, with the objective being to set each leasing fee at no more, and no less, than an industry-standard rate in each particular market within which leasing services are provided.
The Amended and Restated Asset Management Agreement and the Amended and Restated Property Management Agreement will each be available on www.sedar.com.
About Melcor REIT
Melcor REIT is an unincorporated, open-ended real estate investment trust. Melcor REIT owns, acquires, manages and leases quality retail, office and industrial income-generating properties in western Canada. Its portfolio is currently made up of interests in 39 properties representing approximately 3.2 million square feet of gross leasable area located across Alberta and in Regina, Saskatchewan and Kelowna, British Columbia. For more information, please visit www.melcorREIT.ca.
Forward-Looking Information
This press release may contain forward‐looking information within the meaning of applicable securities legislation, which reflects the REIT’s current expectations regarding future events. Forward‐looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward‐looking information. Such risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of tenants; the REIT’s ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest rate fluctuations. The REIT’s objectives and forward‐looking statements are based on certain assumptions, including that the general economy remains stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward‐looking information in this press release speaks as of the date of this press release. The REIT does not undertake to update any such forward‐looking information whether as a result of new information, future events or otherwise.
Additional information about these assumptions and risks and uncertainties is contained in the REIT’s filings with securities regulators.
CONTACT: Contact Information: Investor Relations Nicole Forsythe Director, Corporate Communications Tel: 1.855.673.6931 ir@melcorREIT.ca
