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First Capital REIT Completes Plan of Arrangement
First Capital REIT has completed a plan of arrangement that enables it to reorganize.
The REIT has eliminated First Capital Realty as the wholly owned subsidiary that owns, directly and indirectly, all of First Capital’s real estate portfolio.
First Capital will now hold substantially all of its real estate portfolio through subsidiary partnerships and trusts. The REIT expects that the arrangement will simplify First Capital’s operating structure and reduce the “significant complexity of accounting and legal reporting” as well as income-tax compliance inherent under the previous structure.
“The arrangement was an internal reorganization only,” said First Capital. “Completion of the arrangement does not change the REIT’s strategy, portfolio or operations. First Capital’s strategy will remain consistent with the REIT’s existing disclosure.”
The REIT completed the arrangement after unitholders voted almost unanimously in favour of the internal reorganization. First Capital also secured all other required support.
Photo: First Capital
