Retrocom Mid-Market REIT announces unitholder approval for $55 million of property acquisitions



    /NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY NON-CANADIAN
    

SOURCE/ TORONTO, June 27 /CNW/ - (TSX - RMM.UN) Retrocom Mid-Market Real Estate Investment Trust (the "REIT" or "Retrocom") announced today that its unitholders have approved the REIT's previously announced acquisition of four properties for a purchase price of approximately $55 million from a vendor group (the "Vendor") led by Mitchell Goldhar, owner of SmartCentres Inc. The purchase price, which represents a 9% capitalization rate on estimated 2008 net operating income for the four properties, will be satisfied by the assumption of existing mortgage debt in the amount of approximately $9.2 million and the issuance to the Vendor of approximately 9.1 million Class B units of Retrocom Limited Partnership at a price of $5.00 per unit. As a result of the transaction, there will be a change in effective control (approximately 38%) of the REIT. The four properties, totaling approximately 522,915 square feet of gross leasable area, are strategically located in the major metropolitan market of the Greater Toronto Area ("GTA"). These properties currently have an occupancy rate of approximately 98% and have a number of high quality tenants. The properties are located at 1480/1490 Dundas Street East, Mississauga, 1224 Dundas Street East, Mississauga, 750/760 Birchmount Road, Toronto, and 1100/1140/1170 Burnhamthorpe Road West, Mississauga. The REIT also confirmed today that it has received a financing commitment from a Canadian chartered bank in order to repay or prepay its outstanding $30 million debenture due on July 26, 2008, thereby satisfying another of the conditions to closing of the acquisition. The acquisition is expected to close in early July 2008, unless extended by mutual agreement of the parties, and remains subject to closing conditions, including the receipt of regulatory approvals and certain third party consents, and other conditions customary for real estate transactions. Retrocom Mid-Market REIT is an Ontario unincorporated open-end real estate investment trust which focuses on owning and acquiring mid-market commercial properties in primary and secondary cities across Canada with the objective of producing a geographically diversified portfolio of properties with stable and growing cash flows. This press release shall not constitute an offer to sell or the solicitation of an offer to buy Units of the REIT, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of the REIT have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws. This press release contains forward-looking statements. The statements that are not historical facts contained in this press release are forward-looking statements that involve known and unknown risks, uncertainties and other factors 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 by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the approval by unitholders of the REIT as well as the projected benefits to be derived from the transaction. While the REIT anticipates that subsequent events and developments may cause the REIT's views to change, the REIT specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the REIT's views as of any date subsequent to the date of this press release. Although the REIT has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the REIT. Further information can be found in the disclosure documents filed by Retrocom Mid-Market Real Estate Investment Trust with the securities regulatory authorities, available at www.sedar.com.

For further information:

For further information: David Fiume, Chief Executive Officer, Retrocom
Mid-Market REIT, Tel: (416) 741-7999, Fax: (416) 741-7993

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Retrocom Mid-Market Real Estate Investment Trust

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