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

    
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TORONTO, Oct. 2 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT") today announced that it has closed its previously announced offering of $20 million convertible unsecured subordinated debentures due December 31, 2014 (the "Debentures").

The Debentures were offered through a syndicate of underwriters co-led by National Bank Financial Inc. and Dundee Securities Corporation and including Desjardins Securities Inc., Canaccord Capital Corporation, Genuity Capital Markets and Raymond James Ltd.

The Debentures will pay interest at a rate of 7.75 per cent per annum calculated semi-annually in arrears on June 30 and December 31, with the initial interest payment on December 31, 2009.

The Debentures are convertible into fully paid and non-assessable units of Scott's REIT at a conversion price of $8.04 per unit, subject to adjustment upon the occurrence of certain events, at the holders' option at any time prior to the close of business on the earlier of December 31, 2014 and the business day immediately preceding the date fixed for redemption. The conversion price is equivalent to a ratio of approximately 124.378 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 207 properties in seven provinces across Canada. Scott's REIT's properties are well-located and geographically diverse across Canada and nearly all properties are long-term quadruple net leases. The REIT has approximately 68.9 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, on Priszm LP 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 Scott's REIT's filings with the Canadian securities regulators, available at www.sedar.com.

SOURCE KEYreit

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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