TSX SYMBOL: BEI.UN November 19, 2004
Controlling Unitholders of Boardwalk Real Estate Investment Trust Propose Unit Sale
CALGARY, Nov. 19 /CNW/ - Sam and Van Kolias, the controlling unitholders of Boardwalk Real Estate Investment Trust, through their interest in Boardwalk Properties Company Limited, wish to announce their intention to sell up to a maximum of 500,000 units of Boardwalk Real Estate Investment Trust from their combined holdings. The controlling unitholders currently own or have control or direction over a total of 9,680,000 units of Boardwalk Real Estate Investment Trust, representing approximately 20% of the outstanding units. The controlling unitholders also have control or direction over 4,470,000 class B limited partnership units of Top Hat Real Estate Limited Partnership ("LP B Units"), each LP B Unit being convertible into one trust unit of Boardwalk Real Estate Investment Trust. If the controlling unitholders exchanged all of the LP B Units they own into trust units of Boardwalk Real Estate Investment Trust, they would have control over an additional 6.66% of the trust units of Boardwalk Real Estate Investment Trust, or an aggregate of 26.66% of the trust units of Boardwalk Real Estate Investment Trust.
The unit sale is being undertaken to provide the controlling unitholders with a source of funds to pay the tax they incurred on the capital gain which resulted on the May 3, 2004 conversion of Boardwalk Equities Inc. to a real estate investment trust. The decision to engage in this sale of units, like previous sales of common shares of Boardwalk Equities Inc. prior to its conversion to a real estate investment trust conducted by Messrs. Sam and Van Kolias, does not reflect any change in the controlling unitholders' intention to maintain their significant equity stake in Boardwalk Real Estate Investment Trust. Over the past ten years, Sam and Van Kolias have taken no wage or salary compensation from Boardwalk Equities Inc. prior to its conversion to a real estate investment trust on May 3, 2004, or Boardwalk Real Estate Investment Trust since that date, in their capacities as officers of those entities and/or their affiliates.
The unit sale program is similar to the share sale program commenced by Messrs. Sam and Van Kolias on November 7, 2003 for up to a maximum of 450,000 common shares of Boardwalk Equities Inc., which shares were sold on November 25, 2003. Such common share sale was executed in an orderly basis to avoid any adverse impact on the market for the common shares of Boardwalk Equities Inc.
Furthermore, as previously announced on April 6, 2004, Messrs. Sam and Van Kolias intend to make similar dispositions on a quarterly basis in the future to continue to fund various charitable endeavours, pay down indebtedness and taxes, as well as to diversify their investment portfolios. Messrs. Sam and Van Kolias will however continue to hold a material interest in Boardwalk Real Estate Investment Trust after any such dispositions.
The controlling unitholders have appointed National Bank Financial to execute the unit sale through the facilities of the Toronto Stock Exchange. The unit sale will commence on or after December 6th, 2004, in accordance with applicable securities regulations, and, in accordance with past common share sale programs conducted by Messrs. Sam and Van Kolias, will be executed in an orderly basis so as to avoid adversely impacting the market for the units of Boardwalk Real Estate Investment Trust. Notice of the controlling unitholders' intention to sell has been filed with the applicable securities commissions and stock exchanges.
Boardwalk Real Estate Investment Trust is Canada's largest owner/operator of multi-family rental communities. Boardwalk currently owns in excess of 250 properties with over 31,700 units totalling approximately 27 million net rentable square feet. The REIT's portfolio is concentrated in the provinces of Alberta, Saskatchewan, Ontario and Quebec. Boardwalk is headquartered in Calgary and its units are listed on the Toronto Stock Exchange and trade under the symbol "BEI.UN". The REIT has a total market capitalization of approximately $2.1 billion.>>
For further information please contact: Boardwalk REIT Sam Kolias, President and CEO, (403) 531-9255; Roberto Geremia, Senior Vice President, Finance and Chief Financial Officer, (403) 531-9255; Paul Moon, Director of Corporate Communications, (403) 531-9255.
