December 1, 1999
Claude Lamoureux, President and CEO of the Ontario Teachers' Pension Plan
Good afternoon. I'm Claude Lamoureux, President and CEO of the Ontario Teachers' Pension Plan Board. I'm very pleased to be here today with Mr. Bruce Duncan to announce that Teachers' is offering a premium to shareholders to acquire 100% of Cadillac Fairview.
Teachers' is delighted to have this unique opportunity to acquire the best real estate portfolio in Canada. We've put forward a win-win offer that makes sense for shareholders, Cadillac Fairview's employees and tenants and Teachers'.
First, the shareholders. Cadillac Fairview is trading at higher prices than competing real estate companies in Canada. Our $34 offer delivers a premium above Cadillac Fairview's current trading price and represents fair value for shares in the company.
We are pleased that the Board of Cadillac Fairview and its management team has recommended the deal to shareholders. As Mr. Duncan mentioned, this offer has been evaluated and approved by two sophisticated investors as a good deal for all shareholders, and we encourage them to accept it.
For Cadillac Fairview's employees and tenants, we want to assure you that, if this offer is successful, it will be business as usual at the company. Cadillac Fairview is a well-run company with a long history in Canada and a good corporate reputation. We don't want to interfere with that.
In our view, Cadillac's most important asset is its people. We understand the importance of maintaining a committed and experienced team of professionals to lead the company in its daily operations. We'll ensure that, should we gain control of the company, the change in ownership will be seamless for employees and tenants of Cadillac Fairview.
For the Teachers' pension plan, we think this portfolio has great long-term value. It includes some of the best retail and office properties in Canada-the Eaton Centre, the TD Centre and the Pacific Centre in Vancouver. This is prime real estate.
Real estate investments are a good fit for the pension plan because we pay teachers' pensions indexed to inflation. Therefore, quality real estate investments are a good hedge against inflation.
If you look at the track record of our real estate division, we tend to acquire valuable properties and keep them because they are well-matched to the needs of the pension plan over the long term.
We are long-term investors. We've had a strong and productive relationship with Cadillac Fairview over the years, and we've made a serious and fair offer to pay shareholders a premium for their shares. Teachers' has the management expertise, financial resources and capability to ensure that this premier real estate portfolio remains the best in Canada.
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