Melcor REIT has launched a strategic review designed to improve its financial position and maximize unit value.

Edmonton-based Melcor announced that its board has formed an independent committee to oversee the review.

DLA Piper has been appointed as legal counsel to the committee. However, Melcor warned, there is no guarantee that the review will lead to any specific transaction or outcome, and the timeline for completion has not been set.

Additionally, the REIT has suspended distributions due to uncertainties in capital and property markets, following a comprehensive review aimed at ensuring long-term viability and preserving value for unitholders.

“The board believes this decision is prudent and in the best interests of the REIT and its unitholders,” said Melcor in a news release. “The distribution suspension is expected to enable the REIT to retain approximately $1.2 million of cash, monthly, improving the REIT’s financial flexibility as it continues advancing its short and long-term objectives.”

Melcor’s portfolio contains 38 retail, office and industrial assets in Alberta, Saskatchewan and B.C.

Pictured: Melcor retail property in northwest Calgary

Photo: Melcor REIT