Huntingdon REIT announces the acquisition of Alberta industrial properties

    WINNIPEG, March 7 /CNW/ - Huntingdon Real Estate Investment Trust
("HREIT") (TSX: HNT.UN) announced today that it has agreed to acquire three
recently built Alberta industrial properties for a total purchase price of
$19.6 Million (subject to the usual closing adjustments). The properties,
which contain a combined total of 94,960 square feet of leasable area and are
located in three of the primary western Canadian oil and gas centres, are as

    1.  7001 - 96th Street, Grande Prairie, Alberta, is a 28,280 square foot
        industrial building, with a 5,000 square foot secondary building,
        situated on a 14.77-acre site.

    2.  4080 - 77 Street, Red Deer, Alberta, is a 28,280 square foot
        industrial building, with a 5,000 square foot secondary building,
        situated on an 11.76-acre site.

    3.  35 Martin Way, Brooks, Alberta, is 23,400 square foot industrial
        building, with a 5,000 square foot secondary building, situated on a
        7.41-acre site.

    The properties will be leased-back to the vendor, Leader Energy Services
Ltd. ("Leader") for its western Canadian oilfield services facilities. Leader
is a TSX Venture listed company that provides well stimulation and cementing
services to the oil and gas industry in western Canada and northeastern United
States. Leader will enter into a 20-year, triple net lease with rent increases
every five years.
    The purchase price represents an implied 10.57% capitalization rate,
based on year one net operating income. HREIT has obtained a commitment for
first mortgage financing in the amount of $13,975,000, for a five-year term
and bearing interest at 5.63%. The balance of the purchase price, subject to
the usual closing adjustments, will be paid in cash. The acquisition is
scheduled to close during March 2007.
    HREIT is a real estate investment trust, which is listed on the Toronto
Stock Exchange under the symbol HNT.UN. The objective of HREIT is to provide
Unitholders with stable and growing cash distributions from investments in a
geographically diversified Canadian portfolio of quality commercial and
industrial real estate properties. There are currently 71,872,235 trust units
outstanding. For further information on HREIT, please visit our website at

    This press release contains certain statements that could be considered
as forward-looking information.  The forward-looking information is subject to
certain risks and uncertainties, which could result in actual results
differing materially from the forward-looking statements.

    The TSX has not reviewed or approved the contents of this press release
    and does not accept responsibility for the adequacy or accuracy of this
    press release.

For further information:

For further information: Arni Thorsteinson, President & Chief Executive
Officer; or Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax:
(204) 452-5505, Email:

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890