Toronto's Counsel Corp. Selling 800000-SF Portfolio for $141 <b>...</b>

Toronto-based Counsel Corp.  (TSX: CXS) is kicking off the New Year with a $140.6 million sale of an 800,000-square-foot real estate portfolio it owns or manages.

The buyer is Retrocom Mid-Market Real Estate Investment Trust (TSX:RMM.UN), also headquartered in Toronto. The deal was scheduled to close by Dec. 31, 2010 or in early 2011.

The portfolio includes seven commercial retail properties totaling over 800,000 square feet of gross leasable area and a development property in the provinces of Ontario and New Brunswick.

The aggregate purchase price for the Portfolio is $140.6 million, subject to the usual closing adjustments, according to the company's news release.

Retrocom will be assuming all of the long-term mortgage debt currently on the properties.

870 Red River Road Map, Thunder Bay, Ontario

Counsel has about a 20% equity interest in seven of the properties, which it manages for its own account and for third party investors.

Counsel also has a carried interest in the earnings generated for the third party investors.

The eighth property, 870 Red River Road in Thunder Bay, Ontario, is owned by Terra Firma Capital Corporation (TSX-V: TII), a Toronto Stock Exchange  Venture Exchange-listed company that is managed and 23%-owned by Counsel.

The portion of the purchase price allocated to the Red River Road property is about  $2.7 million.

Allan Silber, Chairman & CEO of Counsel said "the sale of the portfolio is consistent with our mandate to acquire, redevelop and improve quality real estate product for the investor marketplace.

Allan Silber

"Since 2006 we have been acquiring and adding value to a select set of real estate assets that meet our investment criteria, for our account and on behalf of our partners."

Silver said, "We believe we have created significant value in the Portfolio by executing on our proactive asset management strategy and that current market conditions provide an opportune time to realize on this value creation.

"Counsel will continue to seek out new and compelling opportunities to build on our successful real estate track record."

Counsel Corp. is a private equity investor and alternative asset manager traded on the Toronto Stock Exchange (TSX).

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