Huntingdon Real Estate Investment Trust Prices $40 Million Public Offering of Secured Debt Units

/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

RICHMOND, BC, Nov. 3, 2011 /CNW/ - Huntingdon Real Estate Investment Trust (the "Trust" or "HREIT") (TSX: HNT.UN) is pleased to announce that it has priced, with Canaccord Genuity Corp. and RBC Dominion Securities Inc. (together, the "Agents"), its previously announced fully marketed offering of 40,000 units (each, a "Debt Unit") for gross proceeds of $40,000,000 (the "Offering").  A short form prospectus will be filed with the securities regulatory authorities in each of the provinces of Canada, except for Quebec, in relation to the Offering.

Each Debt Unit will be priced at $1,000 (the "Offering Price") and is comprised of a face value $1,000 principal amount secured debenture (each, a "Debenture") and 28 trust unit purchase warrants (each, a "Warrant") that will provide approximately 25% warrant coverage of the principal Debenture amount.

In addition, HREIT has granted the Agents an over-allotment option, exercisable in whole or in part, at the discretion of the Agents, for a period of 30 days from the date of closing (the "Closing Date"), to purchase up to an additional 6,000 Debt Units at the Offering Price, solely to cover over-allotments, if any, and for market stabilization purposes.

The Debentures will bear a coupon rate of 7.50% and will mature on December 31, 2016.

Each Warrant will entitle the holder to purchase one trust unit of HREIT at any time prior to December 31, 2016 at an exercise price of $9.00.

The net proceeds of the Offering are intended to be used to redeem HREIT's 7.5% Series C convertible unsecured subordinated debentures and, if applicable, for general working capital purposes.

Closing of the Offering is expected to occur on or about November 10, 2011, or such other date as HREIT and the Agents mutually agree, and is subject to certain conditions including, the approval of the Toronto Stock Exchange and applicable regulatory approvals, and the execution of a definitive agency agreement with the Agents.  Additional information about HREIT and the Offering, including a corporate presentation, is available at HREIT's website at www.hreit.ca and on SEDAR at www.sedar.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

HREIT is a real estate investment trust which is listed on the Toronto Stock Exchange under the symbols HNT.UN (Trust Units) and HNT.DB.C (Series C Convertible Debentures). HREIT owns, directly or indirectly, 76 income producing commercial properties that have a total gross leasable area of 5.5 million square feet, located in five provinces and the Northwest Territories.

Notice to Readers

Certain statements contained in this press release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The forward-looking statements contained in this press release include that the closing of the Offering is expected to occur on or about November 10, 2011, or such other date as HREIT and the Agent mutually agree, and the net proceeds of the Offering are intended to be used to redeem HREIT's 7.5% Series C convertible redeemable unsecured subordinated debentures and, if applicable, for general working capital purposes. The forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations including, but not limited to, the risks detailed from time to time in HREIT's filings with Canadian provincial securities regulators, available on SEDAR at www.sedar.com. HREIT cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and HREIT does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by applicable law.

SOURCE Huntingdon Real Estate Investment Trust

For further information:

Zachary R. George, Trustee, President and Chief Executive Officer
Tel: (604) 249-5119
Fax: (604) 249-5101
Email: zgeorge@hreit.ca

Profil de l'entreprise

Huntingdon Real Estate Investment Trust

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