TSX SYMBOL: BEI April 6, 2004
Controlling Shareholders Of Boardwalk Equities Inc. Decide Not To Proceed With Secondary Offering
Calgary, Alberta – April 6, 2004 - Boardwalk Equities Inc. (“BEI” - TSE) Sam and Van Kolias, the controlling shareholders of Boardwalk Equities Inc., through their interest in Boardwalk Properties Company Limited, announced today their intention not to proceed with the previously announced secondary offering of approximately two-thirds of their common shares of Boardwalk (“Common Shares”) from their combined holdings (the “Secondary Offering”). The controlling shareholders currently own or have control or direction over a total of 15,150,000 Common Shares representing approximately 28.9% of the outstanding Common Shares. The decision not to proceed with the Secondary Offering was the result of current market conditions with respect to the Common Shares and Messrs. Sam Kolias’ and Van Kolias’ desire to retain as significant an interest in Boardwalk Real Estate Investment Trust (“Boardwalk REIT”), following the successful completion of the proposed conversion of the Corporation to a Real Estate Investment Trust (the “Conversion”), as they have in the Corporation for the immediate and near future. Messrs. Sam Kolias and Van Kolias will, following successful completion of the Conversion, divest themselves of smaller amounts of units of Boardwalk REIT (“REIT Units”) from their combined holdings in quarterly sales as part of transactions similar to the sales of Common Shares undertaken by them over the course of the last four years. Such sales, like those previously conducted by Messrs. Sam and Van Kolias, will be undertaken to provide the controlling shareholders with a source of funds to provide funding for their charitable causes, taxes, pay down existing indebtedness and diversify their investment portfolios. The decision to engage in these ongoing small sales of REIT Units in a similar fashion to the ones previously conducted by Messrs. Sam and Van Kolias do not reflect any change in the controlling shareholders’ intention to maintain their significant equity stake in Boardwalk REIT. Rather, the decision to conduct future sales reflects the fact that over the past ten years, Sam and Van Kolias have taken no wage or salary compensation from Boardwalk in their capacities as officers of the Corporation. Any future sales program will be similar to the one commenced by Messrs. Sam and Van Kolias on November 7, 2003 for 450,000 Common Shares, which share sale was completed on November 25, 2003. Assuming successful completion of the Conversion, Messrs. Sam Kolias and Van Kolias currently intend to make regular sales of up to a maximum of 500,000 REIT Units each fiscal quarter, or an aggregate of 2,000,000 REIT Units per year from their combined holdings. In addition, Messrs. Sam Kolias and Van Kolias intend to make a charitable donation of 1,000,000 shares from their combined holdings just prior to the successful completion of the Conversion. All proposed sales of REIT Units will be executed in an orderly basis to avoid any adverse impact on the market for the REIT Units. Notwithstanding such proposed sales, Messrs. Sam Kolias and Van Kolias will, assuming successful completion of the Conversion, continue to hold a material interest in Boardwalk REIT for the foreseeable future. The controlling shareholders have appointed National Bank Financial to execute any proposed sales through the facilities of the Toronto Stock Exchange. Any sales of REIT Units by Sam Kolias and Van Kolias will not commence until after successful completion of the Conversion, expected to be on or about May 3, 2004, will be made in accordance with applicable securities regulations, and, in accordance with past share sale programs conducted by Messrs. Sam and Van Kolias, will be executed in an orderly basis so as to avoid adversely impacting the market for the REIT Units. Notice of the controlling shareholders' intention to sell any REIT Units will be filed with the applicable securities commissions and the Toronto Stock Exchange prior to any such sales, in accordance with applicable securities laws and stock exchange rules and regulations. Some of any proposed sale of REIT Units by Sam and Van Kolias may be undertaken concurrent with Boardwalk’s normal course issuer bid, which began on August 25, 2003. In connection therewith, Messrs. Sam and Van Kolias will take appropriate steps to ensure that none of the REIT Units sold in any future sales program are purchased as part of Boardwalk’s normal course issuer bid and will instruct National Bank Financial not to sell any of the REIT Units in the sales program through Boardwalk’s normal course issuer bid. Corporate Profile Boardwalk Equities Inc. is Canada’s largest owner/operator of multi-family rental communities. Boardwalk currently owns and operates in excess of 250 properties with over 31,400 units totaling approximately 26 million net rentable square feet. The Company’s portfolio is concentrated in the provinces of Alberta, Saskatchewan, Ontario and Quebec. Boardwalk is headquartered in Calgary and its shares are listed on the Toronto Stock Exchange under the symbol BEI. The Company has a total enterprise value of approximately $2.3 billion. For further information please contact: Boardwalk Equities Inc. Sam Kolias, President and CEO, (403) 531-9255; Roberto Geremia, Senior Vice President, Finance and Chief Financial Officer, (403) 531-9255; Mike Hough, Senior Vice President, (416) 364-0849; Paul Moon, Director of Corporate Communications, (403) 531-9255.
