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(June 4, 2007) Dundee REIT is getting lighter. The company announced Monday that GE Real Estate is buying Dundee’s Ontario, Quebec and Newfoundland assets for $2.4 billion.

GE will pay $165 million for outstanding units of Dundee REIT at $47.50 per unit. The move will give GE Real Estate about an 18% equity interest in the investment trust.

This purchase doesn’t affect Dundee’s Western Canadian holdings, which are valued at about $1.5 billion. According to a company release, Dundee’s concentration on the West will transform the REIT “into a more growth-oriented, opportunistic real estate investment trust.”

Dundee will continue to distribute $2.20 on an annualized basis, but after the June 15 distribution payout, the REIT’s distribution reinvestment and unit purchase plan will be suspended until January 2008.

“We believe that this is the ideal time for this transaction,” said Michael Cooper, vice-chairman and CEO of Dundee REIT. “[The trust has] performed extremely well over the last two years and now trades at a multiple that is competitive with the largest and most successful commercial REITs. By surfacing this premium offer on a premium value, it is the first time that Dundee REIT unitholders have the option to either sell their units or maintain an investment with our management team through the transformed REIT with the opportunity to own a very flexible and competitive real estate vehicle.”

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Claymore launches new global water ETF

(June 4, 2007) Next time you grab a glass of cool water, check your bank account — it may have gotten fatter.

Of course, that’s only if you’re investing in Claymore Investments’ new fund, the Claymore S&P Global Water ETF. The company announced Monday that the ETF is now trading on the TSX. Claymore’s new offering is made up of a group of companies that’s distributed equally among water, utilities and infrastructure businesses, and water equipment and materials companies.

The ETF’s benchmark is the S&P Global Water Index, which is composed of 50 equity securities that are listed on “global developed market exchanges, and based on the relative importance of the global water industry within those companies’ business models,” said Claymore in a release.

Som Seif, president and CEO of Claymore Investments, said that his company is “excited about the launch of this new ETF that seeks to provide exposure to the global water industry. We believe nothing is more essential than water, and the need for more reliable sources is very strong. We believe the increasingly tighter supply of clean, fresh water is driving greater infrastructure spending in the sector and may create good opportunities for long-term investors.”

The new ETF will be offered in two classes of units, the Common Unit and the Advisor Class Unit.

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Scotiabank adds to its wealth management team

(June 4, 2007) Scotiabank is beefing up its wealth management unit. The bank announced Monday that two new additions have been made to the department.

Glen Gowland will become the new managing director of Scotia Mutual Funds and president and CEO of Scotia Securities, while Neil MacDonald is taking on the position of managing director, mutual fund products.

Gowland’s not new to Scotiabank. He’s been with the company for seven years, initially tackling the vice-president of sales and marketing position for Scotia Securities. He eventually moved on to district vice-president for Toronto Centre and finally became the managing director of business development, wealth management.

His new co-worker, MacDonald, has more than 10 years of asset management experience. “Neil has extensive knowledge of investment management strategies and mutual fund prices,” said Scotiabank’s executive vice-president of wealth management, Barb Mason.

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Manitoba finally recognizes the MFDA

(June 4, 2007) Talk about arriving fashionably late: Manitoba has finally recognized the MFDA.

The SRO announced Friday that the prairie province’s securities commission has approved the initial recognition of the MFDA.

The MSC has published the initial recognition order for a 30-day comment period. The deadline for comments is June 30.

(06/04/07)