Parkit completes sale of Winnipeg property to Pro

Executive Summary

• Parkit Enterprise Inc. completed the sale of its remaining Winnipeg property to Pro Real Estate Investment Trust (Pro REIT) for gross proceeds of $5.35 million.
• Parkit received $2.14 million of the proceeds in the form of 345,161 Pro REIT trust units, increasing its aggregate ownership stake in Pro REIT to approximately 10.4% of voting units.
• The transaction is classified as a non-arm's-length transaction due to Steven Scott, Parkit’s board chair, serving as a trustee on Pro REIT’s board.

Key Details

• Transaction Value: Gross proceeds of $5.35 million, subject to customary adjustments.
• Property Details:
  • Location: 555 Camiel Sys, Winnipeg, Man.
  • Structure: One building with 24,665 square feet of gross leasable area.
  • Price per Square Foot: $217.
• Consideration Received by Parkit:
  • Cash/Net Proceeds: $2.14 million.
  • Equity Received: 345,161 Pro REIT trust units.
  • Unit Price: $6.20 per trust unit.
• Post-Transaction Ownership in Pro REIT:
  • Parkit now holds approximately 10.4% of the issued and outstanding trust units and special voting units of Pro REIT.
  • Total Voting Units Held: 6,980,674 units.
  • Composition of Holdings:
    • 4,305,674 trust units.
    • 2,675,000 Class B LP units of Pro REIT LP (each exchangeable for one trust unit and attached to a special voting unit).
• Previous Ownership: Prior to the transaction, Parkit held approximately 9.9% of voting units (6,635,513 units).
• Regulatory Status: The transaction constitutes a non-arm's-length transaction under TSX Venture Exchange policies. Parkit has filed an early warning report with SEDAR+.

Notable Quotes

• Steven Scott, Chairman of Parkit's Board: "We are excited to add to our investment in Pro REIT and look forward to continue to work with Gord and his team on future opportunities."