ARTIS acquires $68.3 million of property, confirms $223.8 million more in the pipeline



    WINNIPEG, Nov. 7 /CNW/ - Artis Real Estate Investment Trust ("Artis" or
the "REIT") confirmed today that $68.3 million of acquisitions, previously
announced on August 17, 2007, have now closed. Particulars of the acquisitions
are as follows:

    
    -------------------------------------------------------------------------
    Property    Property      Location   Leasable Area  Purchase    Closed
                 Type                   (000's square    Price
                                            feet)       ($000's)
    -------------------------------------------------------------------------
    Winnipeg
     Square/
     Commodity
     Exchange  Retail/Class                                       August 29,
     Tower(1)    A Office    Winnipeg, MB    598        $40,708     2007

    Pepco
     Industrial                                                 September 15,
     Building   Industrial     Nisku, AB      20        $3,560      2007

    Delta
     Shoppers                                                   September 26,
     Mall          Retail      Delta, BC      75        $24,000     2007
    -------------------------------------------------------------------------
    Total                                    693         $68,268
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Artis acquired a 38% interest in this 598,000 square foot property.

    These properties were acquired at a weighted average year one going-in
capitalization rate ("capitalization rate") of 7.3%. The purchase prices were
satisfied with cash and from the proceeds of $44.2 million of mortgage
financing bearing interest at a weighted average rate of 5.45% per annum.
    "Our acquisition pipeline remains very strong. As of today's date, Artis
has $97.8 million of properties under unconditional purchase agreements, with
an overall capitalization rate of 7.7%," said Armin Martens, CEO of the REIT.
"Based on financing commitments, Artis anticipates that the weighted average
interest rate on the financing for the acquisitions will be under 5.7%," added
Mr. Martens. "As well, Artis has entered into conditional agreements or
options to purchase a further $126.0 million of commercial property in
Alberta, British Columbia and Manitoba. The capitalization rate is anticipated
to be 6.5% on these acquisitions; the weighted average interest rate on
financing is estimated to be under 5.7%. We are pleased to report that Artis
expects to close these acquisitions before the end of 2007."

    Particulars of the unconditional acquisitions are as follows:

    Property Property Type Location Leasable Area (000's square feet)
    -------------------------------------------------------------------------
    Property    Property      Location   Leasable Area  Occupancy  Year Built
                 Type                   (000's square            /Redeveloped
                                            feet)
    -------------------------------------------------------------------------
    Glenmore
     Commerce
     Court       Office       Calgary, AB     58          100.0%        1977

    ADA
     Industrial
     Potfolio    Industrial   Winnipeg, MB   950           98.9%   1978/1984

    Paramount
     Building    Office       Calgary, AB     67           99.0%   1978/2002

    Leon's
     Building(1) Retail       Nanaimo, BC     54          100.0%       1999


    ------------------------------------------------------------------------
    Total                                  1,129             99.1%
    ------------------------------------------------------------------------
    ------------------------------------------------------------------------
    (1) Previously announced on June 12, 2007
    

    Glenmore Commerce Court

    Glenmore Commerce Court is a 100% occupied two-story suburban office
property located on Glenmore Trail in southeast Calgary. The property includes
91 underground and 85 surface parking stalls, providing an excellent parking
ratio of 3 stalls per 1,000 square feet of leasable area. With in-place rents
estimated to be 33% below market, management anticipates significant upside
potential as leases roll over in this property.

    ADA Industrial Portfolio

    The ADA Industrial Portfolio is comprised of 16 industrial properties,
aggregating a total of 950,000 square feet of leasable area, with the majority
located in the well-established St. James Industrial area, in close proximity
to the Winnipeg International Airport. The portfolio is currently 98.9%
occupied by a variety of local, national, international and government
entities. Average in-place rent rates are just $3.75 per square foot and
management estimates that there is excellent upside potential in the near term
as below market leases are rolled over at market rents.

    Paramount Building

    Paramount Building is a five-storey office tower located in the mid-west
core submarket of downtown Calgary. Significant capital upgrades have recently
been completed in the building; the property also has 47 underground parking
stalls, providing an excellent ratio of 1 stall per 1,500 square feet of
leasable area. The Paramount Building is almost fully occupied; the major
tenant is Birchcliff Energy, with a newly signed 10-year lease with a rental
increase in year five. Birchcliff Energy is a publicly traded oil and gas
exploration company with a market capitalization of over $500 million.

    Leon's Building

    The Leon's Building, which was previously announced as part of the
Nanaimo portfolio in a press release dated June 12, 2007, is a 53,953 square
foot retail building located in Nanaimo, BC. The Leon's building was
constructed in 1999, and is 100% leased to two strong national retailers on
long-term leases with contractual rent increases.

    Artis is a growth-oriented real estate investment trust focused
exclusively on commercial properties located in primary and growing secondary
markets in western Canada, particularly in Alberta. The REIT's goal is to
provide Unitholders the opportunity to invest in high-quality western Canadian
office, retail and industrial properties, as well as to provide monthly cash
distributions that are stable, tax efficient, and growing over time.
    Including all of the proposed acquisitions (conditional and
unconditional), Artis will own or have an ownership interest in approximately
$1.1 billion of commercial property; the REIT's proportionate share will be
approximately 6.3 million square feet of the total leasable area in 84
properties. Leasable area will be approximately 31.1% in Manitoba, 6.6% in
Saskatchewan, 55.4% in Alberta, and 6.9% in B.C.; by asset class the portfolio
will be 31.4% retail, 43.3% office and 25.3% industrial.
    The REIT's Distribution Reinvestment Plan ("DRIP") allows Unitholders to
have their monthly cash distributions used to purchase trust units without
incurring commission or brokerage fees, and receive bonus units equal to 4% of
their monthly cash distributions. More information can be obtained at
www.artisreit.com.

    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. Such risk factors include, but are not
limited to, risks associated with real property ownership, availability of
cash flow, general uninsured losses, future property acquisitions,
environmental matters, tax related matters, debt financing, unitholder
liability, potential conflicts of interest, potential dilution, reliance on
key personnel, changes in legislation and proposed changes in the tax
treatment of trusts. 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 does not accept responsibility for the
    adequacy or accuracy of this press release.





For further information:

For further information: Mr. Armin Martens, President and Chief
Executive Officer of the REIT or Mr. Jim Green, Chief Financial Officer of the
REIT or Ms. Kirsty Stevens, Senior Vice President - Investor Relations, at
(204) 947-1250.


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