British Columbia Investment Management Corporation Completes Compulsory Acquisition of Remaining Units of Canadian Hotel Income Properties Real Estate Investment Trust

    VANCOUVER and VICTORIA, Dec. 4 /CNW/ - British Columbia Investment
Management Corporation ("bcIMC") and Canadian Hotel Income Properties Real
Estate Investment Trust ("CHIP REIT") (TSX: HOT.UN) announced today that BFO
Acquisition Limited Partnership ("BFO LP"), an indirect wholly-owned
subsidiary of bcIMC, has completed a compulsory acquisition of all 1,713,297
remaining units of CHIP REIT not already held by BFO LP in accordance with
CHIP REIT's amended and restated declaration of trust. The compulsory
acquisition follows BFO LP's successful offer to purchase all of the units and
6.0% convertible debentures of CHIP REIT, which expired on October 2, 2007.
BFO LP previously completed a compulsory acquisition of the 6.0% convertible
debentures not acquired under the offer on October 3, 2007.
    The units were acquired for cash consideration of Cdn. $19.10 per unit
under the compulsory acquisition, the same consideration paid to holders of
units under the offer. As a result of the compulsory acquisition, BFO LP owns
50,409,292 units of CHIP REIT, representing 100% of the issued and outstanding
units. It is expected that the units will be de-listed from the Toronto Stock
Exchange shortly.
    The purpose of BFO LP's offer and the compulsory acquisition was to
enable it to acquire all of the units of CHIP REIT. bcIMC expects that BFO LP,
CHIP REIT and certain of their respective affiliates will complete a
reorganization in early December 2007 pursuant to which certain affiliates of
bcIMC will purchase all of the assets of CHIP REIT, all units of CHIP REIT
will be redeemed and the trust will be terminated.

    About bcIMC

    bcIMC is an investment management corporation based in Victoria, BC. With
over $83 billion in assets under administration with global exposure, and
supported by industry-leading expertise, bcIMC offers fund management services
for all major asset classes, including currency and infrastructure investment.
bcIMC's clients include public sector pension plans, the BC provincial
government, public trusts and insurance funds. For more information, visit
    BFO LP's principal place of business is located at Sawmill Point, 3rd
Floor, 2940 Jutland Road, Victoria, British Columbia V8T 5K6.

    About CHIP REIT

    CHIP REIT is an integrated hotel real estate investment trust focused on
mid-market and upscale full-service hotels. Through its large, diversified
portfolio, CHIP REIT provides investors with stable income and growth
potential through acquisitions, repositioning and franchising under banners
that include Delta, Radisson, Marriott and Hilton. CHIP REIT currently owns
and manages 32 hotels with approximately 7,700 guestrooms. In 2006, CHIP REIT
was named "Hotel Company of the Year" by Hotelier Magazine, becoming the first
REIT to win a Pinnacle Award in the hospitality industry's national
recognition program.


    This news release may contain forward-looking information.
Forward-looking information typically contains statements with words such as
"anticipate", "believe", "expect", "plan" or similar words suggesting future
outcomes. Such forward-looking statements are subject to risks, uncertainties
and other factors, which could cause actual results to differ materially from
future results expressed, projected or implied by such forward-looking
statements. bcIMC and BFO LP disclaim any intention or obligation to update or
revise any such forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.

For further information:

For further information: Gwen-Ann Chittenden, Manager, Corporate
Initiatives, British Columbia Investment Management Corporation, Phone: (250)
507-0128, Fax: (250) 387-7874,,; Kevin
Grayston, Executive Vice President and CFO, CHIP REIT, Phone: (604) 646-2447,
Fax: (604) 646-2404,

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British Columbia Investment Management Corporation (bcIMC)

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