TSX SYMBOL: BEI.UN February 11, 2005
Controlling Unitholders of Boardwalk Real Estate Investment Trust Propose Unit Sale
Calgary, Alberta
- Boardwalk Real Estate Investment Trust ("BEI.UN" - TSX)
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 9,180,000 units of Boardwalk Real Estate
Investment Trust, representing 18.89% of the outstanding
units. The controlling unitholders also have control
or direction over 4,475,000 class B limited partnership
units of Boardwalk REIT 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 6.84% of the trust units of Boardwalk Real
Estate Investment Trust, or an aggregate of 25.73% 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 unit sale program
announced by Messrs. Sam and Van Kolias on November 19,
2004 for up to a maximum of 500,000 trust units of
Boardwalk Real Estate Investment Trust, which units were
sold between December 6 and December 15, 2004. Such trust
unit sale was executed in an orderly basis to avoid any
adverse impact on the market for the trust units of
Boardwalk REIT
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 BMO Nesbitt
Burns to execute the unit sale through the facilities of
the Toronto Stock Exchange. The unit sale will commence
on or after February 18, 2005, in accordance with
applicable securities regulations and after Boardwalk
Real Estate Investment Trust releases its year-end
financial results, currently scheduled for February 17,
2005, as previously announced on January 27, 2005. In
accordance with past unit sale programs conducted by
Messrs. Sam and Van Kolias, this proposed unit sale 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 260 properties with
over 33,000 units totalling approximately 28 million
net rentable square feet. The REIT’s portfolio is
concentrated in the provinces of Alberta,
British Columbia, 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”.
For further information please contact:
Boardwalk REIT
Sam Kolias,
President and CEO,
(403) 531-9255;
Paul Moon,
Director of Corporate Communications,
(403) 531-9255.
