Calloway portfolio hits 19 million square feet

    TORONTO, April 26 /CNW/ - Calloway Real Estate Investment Trust
(TSX:CWT.UN) announced today $270 million of accretive investments.
    Approximately $120 million has been invested in the acquisition of four
operating properties in Oakville, Mississauga and Vaughan, Ontario and in
Newfoundland, comprising 688,000 square feet of leased area. A further
$38 million was invested in expansions of 16 owned properties totaling 226,000
square feet and a $4 million loan was advanced for a 145,000 square foot
centre to be constructed in British Columbia. Calloway has the right to
purchase a 50% interest in this property on completion.
    Additional acquisitions under contract comprise four properties for an
aggregate purchase price of $108 million. These include lands for the
development of 1.1 million square feet of new retail space in three greater
Toronto area locations and a newly constructed centre comprising 200,000
square feet of fully rented space in British Columbia.
    The investments described above immediately increased Calloway's
portfolio of owned shopping centre space to 19.2 million square feet at the
end of the quarter from 18.3 million square feet at the start of the year.
They also increase Calloway's owned pipeline of future space and mezzanine
options to 8.2 million square feet. This is 2 million square feet, or 8%,
higher than previous estimates. It is also before including acquisitions still
at the negotiation stage, such as the two previously announced centres in
    Mr. Simon Nyilassy, President and CEO of Calloway said, "We are putting
our capital to work. We are investing for the present, acquiring three quality
properties in the Greater Toronto Area and one in Newfoundland. The shopping
centre under contract in British Columbia should close next month. We are also
investing for the future, with the pending acquisitions of three parcels of
land, all in the GTA. We do not need to raise any new money for these
investments thanks to our strong balance sheet." He added, "our large pipeline
of future developments and retail space that we have the option to acquire
through our mezzanine loan program will grow our portfolio by over 40% as
these developments are completed."
    Calloway's 2007 investing activities to date may be summarized as follows
(in millions of dollars):

                                       Closed    Contract    Total
    Expansions/Developments             $38                   $38
      Development Land                    -         64         64
      Income Properties                 120         44        164
    Loans                                 4                     4
    Total                              $162       $108       $270

    Details of Calloway's investing activities for the three months ended
March 31, 2007 are set out below.

    Expansions and New Developments
    During the first quarter, the REIT completed 226,000 square feet of
expansions and new developments within its existing portfolio, which included
the completion of a 66,179 square foot expansion of the Wal-Mart Supercentre
in Vaughan SmartCentre. The total investment in these activities was
approximately $38.1 million, with an estimated yield of 7.9%. Pursuant to
existing development agreements with SmartCentres, these investments were
financed in part by the issuance of 308,696 Trust Units and LP Units totaling
$5.7 million, and the balance in cash.

    Closed Acquisitions
    During the first quarter, Calloway acquired three (3) properties for
$109 million. The acquired properties are located in the Greater Toronto Area
and comprise 645,000 square feet of leased area. These acquisitions were
financed by the assumption of debt ($23.5 million) and the balance in cash.
    Since the end of the quarter, Calloway has closed on one property in
Mount Pearl, Newfoundland for $10.5 million. The centre is fully occupied and
comprises 43,000 square feet of leased space immediately adjacent to its Mount
Pearl SmartCentre. The purchase price was satisfied by the assumption of debt
($5.3 million) and the balance in cash.
    Management estimates that the initial annual yield of these acquisitions
will be 6.2%.

    During the first quarter, Calloway committed to a five-year, 7.25%
mezzanine financing of $4.3 million to SmartCentres for the development of a
145,000 square foot retail shopping centre in British Columbia. The commitment
provides Calloway with options to acquire 50% of the property. In April,
Calloway provided an additional 7.5% mezzanine financing of $4 million for the
development of a 37,000 square foot retail plaza in Ajax, Ontario. Calloway
has been provided an option to acquire the completed plaza at a price that
will be calculated based on achieved rents and the then-prevailing bond

    Under Contract
    Calloway has contracted to purchase a 200,000 square foot centre in
British Columbia for $44.4 million at an estimated first year yield of 6.75%.
    Calloway has also contracted to purchase three parcels of land in the GTA
for future development of approximately 1.1 million square feet of new retail
space. One site completes the assembly of a 15-acre parcel of land adjacent to
Calloway's Etobicoke Wal-Mart Centre, which will comprise 160,000 square feet
upon completion. The remaining projects are in Stouffville (previously
announced), and Halton Hills. A new Wal-Mart Supercentre recently opened on
the Stouffville site. The initial investments will total approximately
$64 million with a total aggregate investment of approximately $240 million,
over the next three to seven years.

    Calloway also confirmed that it is continuing the previously announced
negotiations with regard to the acquisition of two properties in Oregon, which
would be Calloway's first international investments.

    The Toronto Stock Exchange neither approves nor disapproves of the
    contents of this Press Release.

    This press release contains "forward looking statements" subject to
various significant risks and uncertainties which may cause actual results,
performances and achievements of Calloway to be materially different from any
future results, performances or achievements, expressed or implied by such
forward looking statements. Such risk factors include, but are not limited to,
risks associated with real property ownership, availability of cash flow,
restrictions on redemption, general uninsured losses, future property
acquisition, environmental matters, tax related matters, debt financing,
Unitholder liability, potential conflicts of interest, potential dilution, and
reliance on key personnel. Calloway cannot assure investors that actual
results will be consistent with these forward looking statements and Calloway
assumes no obligation to update or revise them to reflect new events or

    %SEDAR: 00017520E

For further information:

For further information: Simon Nyilassy, President and Chief Executive
Officer, Calloway Real Estate Investment Trust, 700 Applewood Crescent, Suite
200, Vaughan, ON, L4K 5X3, Tel: (905) 326-6400

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