InStorage REIT announces $21.2 million acquisition of four self-storage properties

    TORONTO, June 15 /CNW/ - (TSXV: IS.UN) InStorage Real Estate Investment
Trust (the "REIT") announced today that it has agreed to purchase a portfolio
of four high quality self-storage properties located in Quebec. The
properties, which operate under the name "Entreposage Domestik", are located
at 255 Shannon Street, Montreal, 3900 Sir Wilfrid Laurier Boulevard,
Longueuil, 2383 Galvani Street, Quebec City and 555 Clemenceau Street,
Quebec City. Collectively, the properties account for total gross rentable
area of approximately 226,000 square feet and house approximately 2,350
storage units.
    The aggregate purchase price for the properties is approximately
$21.2 million which represents a capitalization rate of over 8% based on the
in-place net operating income of these properties.
    "We are very pleased to announce this acquisition which will be accretive
to the unitholders of the REIT," said T. James Tadeson, Chief Executive
Officer. "These properties will significantly increase our presence in Quebec
and position us for further growth in that market."
    The acquisition remains subject to customary closing conditions under the
acquisition agreement. There can be no assurance that the closing conditions
will be satisfied or that the acquisition will be completed. If the conditions
under the acquisition agreement are fulfilled, the acquisition is scheduled to
close on June 28, 2007.

    InStorage Real Estate Investment Trust

    The REIT is an unincorporated open-ended real estate investment trust
that invests primarily in self-storage properties and ancillary businesses
throughout Canada. The REIT is the largest owner/operator of self storage
facilities in Canada and is the country's leading self-storage industry
consolidator, with a current portfolio of 46 self-storage properties located
in Alberta, Saskatchewan, Ontario and Quebec.
    Additional information concerning the REIT may be obtained on the REIT's
website,, and on the SEDAR website at,
under the REIT's profile.

    Non-GAAP Measures

    Net operating income ("NOI") is widely used as a supplemental measure of
a Canadian real estate investment trust's performance and is not defined under
Canadian generally accepted accounting principles ("GAAP"). The REIT uses this
measure to assess the operating performance of its income-producing
properties. NOI should not be considered as an alternative to net income or
other measures that have been calculated in accordance with GAAP and may not
be comparable to similar measures presented by other issuers. Readers are
directed to the REIT's Management's Discussion and Analysis for the three
months ended December 31, 2006 and for the period from January 12, 2006 to
December 31, 2006 for a description of this Non-GAAP measure.

    Forward-Looking Information

    This press release contains forward-looking statements. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the REIT to
be materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Examples of such
statements include: the capitalization rate and the expected net operating
income of the properties; the accretive nature of the acquisition; and the
intention or ability of the REIT to complete the acquisition mentioned above,
as disclosed or at all. Actual results and developments are likely to differ,
and may differ materially, from those expressed or implied by the
forward-looking statements contained in this press release. Such
forward-looking statements are based on a number of assumptions which may
prove to be incorrect, including, but not limited to: the assumption that
marginal increases in rental rates and occupancy levels will be achieved over
current circumstances at the subject properties; an assumed amount of expenses
in connection with the completion of the acquisition and the ongoing
maintenance and operation of the subject properties; the ability and desire of
the REIT and its subsidiaries to obtain necessary financing and satisfy
conditions under the acquisition agreement; the ability and desire of the
parties to the acquisition to comply with the terms of the acquisition
agreement; the level of activity in the underlying self-storage business of
the REIT, the self-storage industry and in the economy generally; consumer
interest in the services and products of the REIT's subsidiaries; competition;
and anticipated and unanticipated costs. While the REIT anticipates that
subsequent events and developments may cause its views to change, it
specifically disclaims any obligation to update these forward-looking
statements. These forward-looking statements should not be relied upon as
representing the REIT's views as of any date subsequent to the date of this
press release. Although the REIT has attempted to identify important factors
that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The factors identified
above are not intended to represent a complete list of the factors that could
affect the REIT. Additional factors are noted under "Risk Factors" in the
REIT's short form prospectus dated March 28, 2007, a copy of which may be
obtained on the SEDAR website at

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

For further information:

For further information: InStorage Real Estate Investment Trust, T.
James Tadeson, Chief Executive Officer, Tel: (416) 867-9705

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