Scott's Real Estate Investment Trust closes $20 million convertible debenture offering



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    TORONTO, Sept. 27 /CNW/ - Scott's Real Estate Investment Trust
(TSX: SRQ. UN) ("Scott's") today announced that it has closed its previously
announced offering of $20 million convertible unsecured subordinated
debentures due December 31, 2012 (the "Debentures").
    The Debentures were offered through a syndicate of underwriters led by TD
Securities Inc. and including BMO Nesbitt Burns Inc., RBC Dominion Securities
Inc., Desjardins Securities Inc. and Genuity Capital Markets G.P.
    The Debentures will pay interest at a rate of 7.15 per cent per annum
calculated semi-annually in arrears on June 30 and December 31, with the
initial interest payment on December 31, 2007.
    The Debentures are convertible at a conversion price of $10.50, subject
to adjustment upon the occurrence of certain events, at the holders' option
into fully paid and non-assessable Units of Scott's REIT at any time prior to
the close of business on the earlier of December 31, 2012 and the business day
immediately preceding the date fixed for redemption. The conversion price is
equivalent to a ratio of approximately 95.2381 Units per $1,000 principal
amount of Debentures.

    About Scott's Real Estate Investment Trust

    Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property
owner with 199 properties in seven provinces across Canada. The REIT's
properties are well-located and geographically diverse across Canada and
nearly all properties are long-term quadruple net leases. The REIT has a
70.6 per cent interest in Scott's Real Estate LP. To find out more about
Scott's Real Estate Investment Trust (TSX: SRQ.UN), visit our website at
http://www.scottsreit.com.

    Forward-looking Statements

    This media release contains forward-looking statements. Such statements
are based on current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might differ
materially from projections suggested in any forward-looking statements due to
factors such as the competitive nature of the quick service restaurant
industry, the ability of Scott's REIT and Scott's Real Estate LP to execute a
growth and development strategy, the reliance of Scott's REIT and Scott's Real
Estate LP on key personnel, and risk associated with the structure of income
trusts. Scott's REIT and Scott's Real Estate LP assume no obligation to update
the forward-looking statements, or to update the reasons why actual results
could differ from those reflected in the forward-looking statements.
Additional information identifying risks and uncertainties is contained in the
REIT's filings with the Canadian securities regulators, available at
www.sedar.com.

    %SEDAR: 00022537E




For further information:

For further information: For investor information, please contact: Trish
Moran, (416) 624-5133, trish.moran@scottsreit.com; For media information,
please contact: Wilcox Group, (416) 203-6666, scottsreit@wilcoxgroup.com

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