Bridgemarq Real Estate Services? Announces Completion of Strategic Transaction to Acquire High-Quality Real Estate Brokerage Assets and Become Independently Managed

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TORONTO, April 1, 2024 /CNW/ - Bridgemarq Real Estate Services Inc. ("Bridgemarq" or the "Company") (TSX: BRE) today announced the completion on March 31, 2024, of the Company's previously announced acquisition of Bridgemarq Real Estate Services Manager Limited (the "Manager") and Proprio Direct Inc. ("Proprio Direct" and collectively with the Manager and with their subsidiaries, the "Target Entities") from an affiliate of Brookfield Business Partners ("Brookfield"), and the settlement of certain payments owing by the Company (collectively, the "Transaction"). As consideration for the Transaction, 2,920,877 Class B subordinated limited partnership units (the "Exchangeable Units") of Residential Income Fund L.P. (the "Partnership") were issued to Brookfield, which are exchangeable on a one-for-one basis into an equivalent number of restricted voting shares (the "Restricted Voting Shares") of the Company.

"The completion of this transaction marks a pivotal moment for Bridgemarq. The acquisition of these brokerage operations and the internalization of the management team are crucial to the long-term success and growth of our business. Expanding the Company's profile with the addition of new and innovative business models will allow us to increase revenues and better position our brands to capture greater market share. We believe this transaction will provide long-term value for shareholders and offer even more diverse and technology-forward solutions for our network of real estate professionals," said Spencer Enright, Chief Executive Officer, Bridgemarq.

For additional details on the Transaction, see the Management Information Circular dated March 1, 2024, and the definitive share purchase agreement for the Transaction dated December 14, 2023, copies of which are available on the Company's profile on SEDAR+ at www.sedarplus.ca.

Organizational Update

Following the completion of the Transaction, the Company effected several key changes to the Company's board of directors (the "Board") and management team to increase the operational effectiveness of the business while maintaining continuity of operations:

  • Lorraine Bell, who has been a valuable member of the Board since 2003, has succeeded Spencer Enright as the independent chair of the Board;

  • Spencer Enright, who for the past decade has been the Chief Executive Officer of the Manager and responsible for overall leadership and oversight over operations of the Target Entities, was appointed Chief Executive Officer of Bridgemarq and will continue as a director on the Board; and

  • Phil Soper will continue in his role managing all agent and franchise relationships as the President of Bridgemarq, and Glen McMillan will continue in his role as Chief Financial Officer of Bridgemarq.