02/11/2013 09:37 EST | Updated 04/13/2013 05:12 EDT

FAM to sell Winnipeg office property to Artis in two-stage, $41M deal

RICHMOND, B.C. - FAM Real Estate Investment Trust (TSX:F.UN) is preparing to sell an office property in Winnipeg to Artis Real Estate Investment Trust (TSX:AX.UN) for $41 million.

Under a two stage process announced Monday, FAM said it has exercised its right to buy 50 per cent of the building at 220 Portage Ave. from the current owner at a price of $20.5 million and assign that right to Artis.

It then has the right under a put-call option to compel Artis to buy the other 50 per cent interest from FAM within 12 months, also for $20.5 million, subject to usual closing adjustments. Artis has the right under a call option to buy FAM's 50 per cent for a period of 90 days after the expiration of the put option.

"The opportunity to dispose of our 50% non-managing interest through this Put-Call structure will enable us to redeploy capital accretively with significant timing flexibility," said FAM CEO Shant Poladian.

FAM is a diversified commercial real estate investment trust with a portfolio of industrial, office and retail real estate with some 1.7 million square feet of gross leasable area primarily in large urban centres across Canada.