Artis REIT provides update on asset management and property management internalizaton

WINNIPEG, Nov. 8, 2011 /CNW/ - Artis Real Estate Investment Trust (TSX: AX.UN) ("Artis" or the "REIT") provided an update today on the status of internalization of the asset management and property management functions.

As announced on November 9, 2010, Artis and Marwest Realty Advisors Inc. agreed to negotiate in good faith the terms and conditions upon which Artis will internalize its asset management, with a view to completing such internalization by no later than December 31, 2011.  The REIT is pleased to announce that negotiations have progressed well, and the asset management functions are expected to be fully internalized, effective January 1, 2012.

Artis is also pleased to announce that it is in the final stages of negotiation with respect to the internalization of property management.  Effective January 1, 2012, Artis anticipates that the omnibus property management agreement between the REIT and Marwest Management Canada Ltd. will be terminated.

Property management for the 78 properties that are currently directly managed by Marwest Management Canada Ltd. will be internalized.  Three of the REIT's properties are currently managed by Marwest Management Canada Ltd. under separate property specific management agreements and those agreements are expected to remain in effect.  81 of the REIT's properties are currently managed by third-party providers under a sub-contract to Marwest Management Canada Ltd.  Those third party service agreements will be assigned by Marwest Management Canada Ltd. to the REIT and will remain in effect.

"Internalization of the property management and asset management functions is an important step in the evolution of Artis.  We anticipate this change will generate operational synergies and ultimately benefit our bottom line," said Armin Martens, CEO of Artis.  "We made a commitment to internalize without cost to the REIT when the time was right and are pleased to announce that the time for that change is now."

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Upcoming Webcast and Conference Call

Interested parties are invited to participate in a conference call with management on Wednesday, November 9, 2011 at 2:00 p.m. CST (3:00 p.m. EST). In order to participate, please dial 1-416-695-6616 or 1-800-952-6845. You will be required to identify yourself and the organization on whose behalf you are participating.

Alternatively, you may access the simultaneous webcast by following the link from our website at http://www.artisreit.com/areit_investor.php.  Prior to the webcast, you may follow the link to confirm you have the right software and system requirements.

If you cannot participate on November 9, 2011, a replay of the conference call will be available by dialing 1-905-694-9451 or 1-800-408-3053 and entering passcode #3604787.  The replay will be available until November 23, 2011. The webcast will be archived 24 hours after the end of the conference call and will be accessible for 90 days.

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Artis is a diversified Canadian real estate investment trust investing in office, industrial and retail properties. Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in Canada and the United States, with a major focus on Western Canada. Artis' commercial property comprises nearly 16.7 million square feet of leasable area in 162 properties. Leasable area by asset class is approximately 22.1% retail, 35.7% office and 42.2% industrial. The portfolio is located 9.6% in British Columbia, 30.0% in Alberta, 5.6% in Saskatchewan, 20.7% in Manitoba, 11.9% in Ontario and 22.7% in the U.S.

Cautionary Statements

This press release contains forward looking statements.  For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward looking statements.  Without limiting the foregoing, the words "expects", "anticipates", "intends", "estimates", "projects", and similar expressions are intended to identify forward looking statements.  Artis is subject to significant risks and uncertainties which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied in these forward looking statements.  Artis cannot assure investors that actual results will be consistent with any forward looking statements and Artis assumes no obligation to update or revise such forward looking statements to reflect actual events or new circumstances.  All forward looking statements contained in this press release are qualified by this cautionary statement.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE Artis Real Estate Investment Trust

For further information:

Mr. Armin Martens, President and Chief Executive Officer, Mr. Jim Green, Chief Financial Officer or Ms. Kirsty Stevens, Chief Administrative Officer of the REIT at (204) 947 1250.


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