Partners REIT Completes Rescission of the Holyrood Transaction and Provides Update on Strategic Review and Property Management & Leasing

BARRIE, ONTARIO--(Marketwired - Oct. 2, 2014) - Partners Real Estate Investment Trust ("Partners" or the "REIT") (TSX:PAR.UN) is pleased to announce that it has received an Order from the Ontario Superior Court and has completed the rescission of the April 2014 transaction in which the REIT acquired three Ontario retail centres (in Hamilton, London and Kemptville) from Holyrood Holdings Limited. The rescission transaction was completed pursuant to the terms of the previously announced Rescission Agreement originally dated June 6, 2014. As a result, the three retail centres have been returned to Holyrood and the securities issued to Holyrood have been returned to the REIT and subsequently cancelled.

Partners plans to reissue its financial statements for the three and six month periods ended June 30, 2014. These statements originally included contributions from the properties acquired from Holyrood. These reissued statements will be consistent with Note 3 of the previously issued statements for the three and six month periods ended June 30, 2014, which were originally filed on August 14, 2014.

Update on Strategic Review

As Partners has advised in the past, National Bank Financial has been retained as independent financial advisor to the REIT's Board of Trustees in order to assist in the completion of a review of strategic alternatives intended to maximize unitholder value. With the Rescission Transaction complete, the Trustees and National Bank Financial intend to devote their full attention to the strategic review process. While no guarantee can be made regarding the outcome of the review, National Bank Financial believes that completion of the Rescission Transaction will increase the REIT's available options for maximizing unitholder value.

Update on Property Management and Leasing

As noted in previous press releases (originally disclosed within a release entitled "Partners REIT Provides Corporate Update," disseminated on July 10, 2014), Partners terminated the previously disclosed Employee Services Agreement. To that end, the REIT is pleased to announce that it has increased the scope of its property management agreement with Epic Realty Partners ("EPIC") to include property management services in Ontario. A national real estate services firm, EPIC provides market guidance, identifies investment opportunities, and manages properties on behalf of its customers. With offices in Toronto, Montreal, Ottawa, Calgary and Vancouver, EPIC manages over 8 million sq. ft. of office, industrial and retail properties on behalf of Canadian and international private/institutional clients. EPIC's assets under management total $1.5 billion.