Realex Properties Corp. - Acquisition and pending acquisition of 50% interest in commercial properties


    CALGARY, Oct. 17 /CNW/ - Realex Properties Corp. ("Realex") is pleased to
announce the acquisition of a 50% interest in three properties containing
258,950 square feet of office and industrial space located in Edmonton,
Alberta. The properties are being acquired in co-ownership with the Canadian
arm of a large US based investment and fund manager and consist of the

                                            Total Area  Owned Area
                                  Ownership   (square    (square    Closing
    Property            Address   Interest     feet)       feet)      Date
    --------            -------   --------     -----       -----      ----

    Bank of Montreal    Edmonton,    50%      133,509     66,754   Oct. 15th,
     ("BMO") Building    Alberta                                    2007
     (downtown office)

    GE Services Centre  Edmonton,    50%       96,804     48,402   Oct. 23rd,
     (suburban office)   Alberta                                    2007

    GE Turbine          Sherwood     50%       26,381     13,191   Oct. 23rd,
     Building            Park,                                      2007
     (industrial)        Alberta

                                  --------- ----------  ----------
    Totals:                          50%      256,694     128,347

    These acquisitions, when completed, bring the property portfolio under
management to approximately 1.5 million square feet of leaseable commercial
space, of which Realex's owned area totals 889,700 square feet, representing
an increase of 58% since the Corporation's IPO one year ago. The total
leasable area under management has increased by 158% since that time. The
recent acquisitions offer strong tenant covenants, high quality buildings in
good locations within the Edmonton market. The in-place rents, averaging
$22.95 per square foot for the BMO building and $13.08 per square foot for the
GE tenanted suburban office and industrial buildings, are attractive in the
context of the current marketplace and should provide good opportunity for
rent uplifts upon renewal of the underlying leases. Approximately 59% of the
space is up for lease renewal in the first five years.
    Realex acquired its interests in the properties for consideration of
$35,195,000, satisfied with assumption of an existing mortgage of $2,903,834
(Realex's share) and cash. Mortgage financing proposals for $16,450,000
(Realex's share) have been obtained with expected funding in early November
2007. The financings have terms of seven and ten years, amortization periods
of 25 years and annual interest rates anticipated to be in the 6 1/8% to
6 1/4% range.
    Realex is pleased to have completed these acquisitions in partnership
with the fund and anticipate these transactions to mark the early beginnings
of what should be a long term mutually beneficial relationship. The strategy
of aligning Realex with financial institutions for purposes of jointly
acquiring real estate allows Realex to leverage its management expertise. In
this regard, the asset manager and the independent members of the Board of
Directors are working to complete the internalization of management. In the
interim, all management fees earned with respect to these current acquisitions
will accrue to the account of Realex.

    The TSX Venture Exchange has neither approved nor disapproved the
    contents of this news release. The TSX Venture Exchange does not accept
    responsibility for the adequacy or accuracy of this news release.

    This news release contains forward looking statements subject to various
significant risks and uncertainties which may cause actual results,
performances and achievements of Realex to be materially different from any
future results, performances or achievements, expressed or implied by such
forward looking statements. Realex cannot assure investors that actual results
will be consistent with these forward looking statements and Realex assumes no
obligation to update or revise them to reflect new events or circumstances.

For further information:

For further information: Marc Sardachuk, President and Chief Executive
Officer, Realex Properties Corp., Telephone: (403) 264-5889, Facsimile: (403)
264-5892; Mark Suchan, Chief Financial Officer, Realex Properties Corp.,
Telephone: (403) 264-5889, Facsimile: (403) 264-5892

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