Artis REIT files preliminary short form prospectus



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

    WINNIPEG, June 24 /CNW/ - Artis Real Estate Investment Trust ("Artis" or
the "REIT") (TSX: AX.UN) announced today that it has filed a preliminary short
form prospectus (the "Preliminary Prospectus") with securities regulatory
authorities in each of the provinces in Canada, in connection with an
overnight-marketed public offering of convertible unsecured subordinated
debentures (the "Series E Debentures") of Artis (the "Offering").
    The Offering will be conducted through a syndicate of underwriters led by
Canaccord Capital Corporation and CIBC World Markets Inc. and will include BMO
Capital Markets, National Bank Financial Inc., RBC Capital Markets, Scotia
Capital Inc., TD Securities Inc., Blackmont Capital Inc., Desjardins
Securities Inc., Macquarie Capital Markets Canada Ltd. and Brookfield
Financial Corp (the "Underwriters"). Artis has granted the Underwriters an
over-allotment option to purchase that number of additional Series E
Debentures equal to up to 15% of the Series E Debentures sold pursuant to the
Offering, exercisable at any time up to 30 days from the closing of the
Offering. The Offering is subject to certain conditions, including regulatory
approval.
    The Offering will be priced in the context of the market with final terms
of the Offering to be determined at the time of pricing. Artis intends to use
the net proceeds from the Offering to repay certain indebtedness
(specifically, to repay existing mortgage debt) and for working capital
purposes. Artis believes this will reduce near term refinancing risk while
simultaneously adding to the pool of unencumbered portfolio assets.
    The Offering is expected to close on or about July 9, 2009. A copy of the
Preliminary Prospectus may be obtained on SEDAR at www.sedar.com or by
contacting Canaccord Capital Corporation, 161 Bay Street, Suite 3000, P.O. Box
516, Toronto, ON, M5J 2S1 or CIBC World Markets Inc., 161 Bay Street, 6th
floor, Toronto, ON, M5J 2S8.
    The Series E Debentures and the underlying Units have not been and will
not be registered under the United States Securities Act of 1933 and
accordingly will not be offered, sold or delivered, directly or indirectly
within the United States, its possessions and other areas subject to its
jurisdiction or to, or for the account or for the benefit of a U.S. person,
except pursuant to applicable exemptions from the registration requirements.
The offering is subject to normal regulatory approvals including approval of
the Toronto Stock Exchange.

    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.

    Artis is a growth oriented real estate investment trust focused
exclusively on commercial properties located in primary and growing secondary
markets in western Canada. 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.
    Artis' commercial property comprises approximately 6.3 million square
feet of leasable area in 85 properties. Leasable area is approximately 30.7%
in Manitoba, 7.8% in Saskatchewan, 55.7% in Alberta, and 5.8% in B.C.; by
asset class the portfolio is 31.4% retail, 41.0% office and 27.6% 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.

    
    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, Mr. Jim Green, Chief Financial Officer or Ms. Kirsty
Stevens, Senior VP - Investor Relations, (204) 947-1250


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