Scott's REIT announces issuance of $3.9 million of Units



    Obelysk Inc. increases ownership

    TORONTO, March 21 /CNW/ - Scott's Real Estate Investment Trust
(TSX: SRQ.UN) ("Scott's REIT"), Canada's leading owner of small-box retail
properties, announced today that it has issued 410,527 Units to its largest
shareholder, Obelysk Inc. for aggregate gross proceeds of $3,900,000 pursuant
to the exercise by Obelysk Inc. of an existing option. As previously
announced, the option was granted in connection with Obelysk assisting Scott's
REIT with two earlier acquisitions.
    The proceeds will be used by Scott's REIT to repay in full a $2 million
debt owed to Obelysk and the remaining proceeds will be used to partially
repay a third party vendor take-back note of $3.9 million.
    Scott's REIT received trustee and regulatory approval to issue the units
at an exercise price of $9.50, representing the market price of the units at
date of grant of the option, as provided for under the terms of the option
agreement.
    As previously disclosed at the time of the acquisitions in July 2006, the
REIT obtained a vendor take-back note of $3.9 million that was guaranteed by
Obelysk. As consideration for issuing the guarantee, Obelysk received this
option.
    With the completion of the equity transaction, Obelysk will now directly
and indirectly own approximately 34.8 per cent interest in Scott's REIT.

    About Scott's Real Estate Investment Trust

    Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property
owner with 196 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 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
Scott's REIT 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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