InnVest Real Estate Investment Trust adopts Unitholder rights plan



    TORONTO, Oct. 9 /CNW/ - InnVest Real Estate Investment Trust ("InnVest"
or the "Trust") (TSX:INN.UN) announced that its Board of Trustees (the
"Board") has unanimously adopted a Unitholder rights plan (the "Rights Plan").
The Plan, which is effective immediately, is subject to regulatory approval
and will be in effect for a maximum of 180 days, following which it will
expire automatically. InnVest is not adopting the Rights Plan in response to
any specific take-over proposal, nor has it been made aware of any such
proposal.
    The Rights Plan is intended to ensure that Unitholders receive fair
treatment in the event of an unsolicited attempt to gain control of the Trust
and, in such event, to ensure Unitholders receive full value and that the
Board of Trustees has time to consider alternatives to maximize Unitholder
value. The Board believes that the implementation of the Rights Plan is
particularly important at the present time given the volatility in the markets
and the Board's view that InnVest's Units are currently significantly
undervalued.
    To implement the Rights Plan, the Board of Trustees has authorized the
issuance of one right (a "Right") for each outstanding InnVest Unit to holders
as of the close of business on October 8, 2008. The Rights will only become
exercisable upon the occurrence of certain triggering events, including the
acquisition by a person or group of persons of 15% or more of outstanding
Units in a transaction not approved by the Board of Trustees. Each Right
entitles (other than the acquiring person or group of persons) to acquire
Units at a substantial discount to the prevailing market price at the time.
    The Rights will not be triggered by purchases of Units made pursuant to a
"Permitted Bid" under the Rights Plan, being a bid made to all InnVest
Unitholders on identical terms and which remains open for acceptance for not
less than 60 days.
    The Rights Plan is not intended to deter a bona fide take-over bid for
InnVest under a full and fair offer. It does not affect the duty of the Board
to give proper consideration to any offer that might be made, and to act in
the best interests of Unitholders.
    A material change report containing a complete copy of the Rights Plan
will be filed with the applicable securities regulatory authorities and will
be made available at www.sedar.com and on InnVest's website at
www.innvestreit.com.

    TRUST PROFILE

    InnVest REIT holds Canada's largest hotel portfolio together with an
interest in Choice Hotels Canada Inc. the largest franchisor of hotels in
Canada. The hotel portfolio currently comprises 148 hotel properties, with
over 19,250 guest rooms, operated under internationally recognized franchise
brands such as Comfort Inn(R), Holiday Inn(R) Quality Suites/Inn(R),
Radisson(R), Delta(R), Travelodge(R), Hilton Hotel(R), Staybridge Suites(R),
Fairmont Hotels(R), Sheraton Suites(R) and Best Western(R). InnVest's trust
units and outstanding convertible debentures trade on the Toronto Stock
Exchange under the symbols INN.UN, INN.DB.A, INN.DB.B and INN.DB.C,
respectively.

    %SEDAR: 00018005E




For further information:

For further information: Kenneth D. Gibson, President and Chief
Executive Officer, Tamara L. Lawson, Chief Financial Officer and Corporate
Secretary, Tel: (905) 206-7100, Fax: (905) 206-7114, Website:
www.innvestreit.com

Organization Profile

InnVest Real Estate Investment Trust

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