TransGlobe Apartment REIT Announces Closing of $57.5 Million Offering of Trust Units

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TORONTO, May 31, 2011 /CNW/ - TransGlobe Apartment Real Estate Investment Trust (the "REIT") (TSX: TGA.UN) announced today that it has closed its previously announced offering of approximately $57.5 million of trust units (the "Units"). The REIT had previously agreed to sell the Units to a syndicate of underwriters led by CIBC on a bought deal basis. The closing includes the Units issued pursuant to the underwriters' exercise in full of the over-allotment option.  The net proceeds from the offering of the Units will be utilized by the REIT to fund future property acquisitions, including the previously announced acquisition of seven buildings (known as Parc Samuel Holland) in the City of Québec, Québec, to repay amounts drawn on its revolving credit facility and for general trust purposes.

About the REIT

TransGlobe Apartment REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT owns a portfolio of 92 residential rental properties containing approximately 12,000 suites principally located in urban centres in Alberta, Ontario, Québec, New Brunswick and Nova Scotia. TransGlobe Investment Management Ltd. and an affiliate administer and operate the assets of the REIT in order to support the REIT's external management structure.

Forward-looking Statements

Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking statements are provided for the purposes of assisting the reader in understanding the REIT's financial position, financial performance and cash flows as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information may relate to the REIT's future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the REIT. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the REIT or the real estate industry are forward-looking statements. In some cases, forward-looking information can be identified by such terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.

Forward-looking statements necessarily involve known and unknown risks and uncertainties, that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which, are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in the REIT's materials filed with Canadian securities regulatory authorities from time to time. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements as there can be no assurance that actual results will be consistent with such forward-looking statements.

Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including the following: the Canadian economy will remain stable over the next 12 months; inflation will remain relatively low; interest rates will remain stable; conditions within the real estate market, including competition for acquisitions, will be consistent with the current climate; the Canadian capital markets will provide the REIT with access to equity and/or debt at reasonable rates when required; TransGlobe Investment Management Ltd. and its affiliates will continue their involvement with the REIT; and the risks identified or referenced above, collectively, will not have a material impact on the REIT. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.

The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. Except as specifically required by applicable Canadian law, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

SOURCE TransGlobe Apartment REIT

For further information:

Kelly Hanczyk
Chief Executive Officer
TransGlobe Apartment REIT
(416) 234-8444

or

Leslie Veiner
Chief Financial Officer
TransGlobe Apartment REIT
(416) 234-8444

Organization Profile

TransGlobe Apartment REIT

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