Plazacorp Retail Properties Ltd. has received a positive ruling from the Canada Revenue Agency (CRA) in respect of converting from a mutual fund corporation to a real estate investment trust (REIT) structure on a tax-deferred basis.

“We are excited about this conversion to a REIT. A ruling request was initially submitted to CRA two years ago and we have finally been successful in obtaining a ruling that will permit us to meet our goals,” says Michael Zakuta, Plazacorp’s president and CEO. “The REIT structure is certainly the more conventional and tax efficient way for investors to hold an interest in real estate today and, for that reason, we believe that this conversion will be beneficial for our shareholders.”

Completion of the conversion will occur this year and will be subject to shareholder approval. Further details will be provided to shareholders in due course.

Plazacorp acquires, develops and redevelops unenclosed and enclosed retail real estate throughout Atlantic Canada, Quebec and Ontario, which are predominantly occupied by national tenants (approximately 90 per cent of the total). The company’s portfolio includes interests in 118 properties totalling 5.2 million square feet, and additional lands held for development. These include properties directly held by Plazacorp, its subsidiaries and through joint ventures.