/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES/
WINNIPEG, Sept. 26 /CNW/ - Artis Real Estate Investment Trust (TSX:
AX.UN) ("Artis") announced that today it has entered into an agreement to sell
to a syndicate of underwriters led by Canaccord Adams and CIBC World Markets
Inc., on a bought deal basis, 4,230,000 trust units ("Units") at a price of
$17.75 per Unit for gross proceeds to Artis of approximately $75 million (the
"Financing"). The Financing is expected to close on or about October 17, 2007
and is subject to regulatory approval.
Artis intends to use the net proceeds from the Financing for a
combination of property acquisitions, debt reduction and for general working
The total purchase price for the property acquisitions, which are under
various stages of contract, is approximately $140 million and represents a
weighted average going in unlevered return ("capitalization rate") of
approximately 7.4%. The total amount of indebtedness to be arranged in
connection with the property acquisitions is expected to be approximately
$70 million with a weighted average interest and term to maturity of 5.75% and
5 years, respectively. Assuming that the conditions of closing are satisfied
with respect to the various acquisitions, closing of the property acquisitions
is expected to occur during the fourth quarter of this year.
Artis REIT is a real estate investment trust listed on the TSX with the
objective of acquiring and maintaining a growing portfolio of properties with
stable cash distributions. Artis REIT focuses on properties located in Western
Canada, particularly in the province of Alberta.
The Units have not been registered under the U.S. Securities Act of 1933,
as amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirement.
This press release shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of the securities in any state
in which such offer, solicitation or sale would be unlawful.
This press release contains forward-looking statements. Artis is subject
to significant risks and uncertainties which may cause the actual results,
performance or achievements of Artis 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 potential changes in the tax treatment of trusts. Artis
assumes no obligation to update or revise such forward-looking statements to
reflect actual events or new circumstances.
For further information:
For further information: Mr. Armin Martens, President and Chief
Executive Officer of Artis, or Mr. Jim Green, Chief Financial Officer of Artis
at (204) 947-1200