Realex Properties Corp. - Acquisition of 25% interest in property portfolio


    CALGARY, June 5 /CNW/ - Realex Properties Corp. ("Realex") is pleased to
announce the completion on June 1, 2007 of the acquisition of a 25% interest
in a 5-building, 422,458 square foot, office portfolio in Calgary and
Edmonton. The properties consist of the following:

                                                 Area             Current
    Property             Address             (square feet)        Vacancy
    --------             -------             -------------        -------

    Plaza 124            Edmonton, Alberta      153,666             3.1%

    Capital Centre       Edmonton, Alberta       65,364             5.5%

    Morgex Building      Edmonton, Alberta       53,000             0.0%

    Riverbend Atrium     Calgary, Alberta        88,669             5.4%

    Stockman Centre      Calgary, Alberta        61,759             3.1%

    The 25% interest of Realex in the properties adds over 105,600 square
feet of leaseable space to its existing portfolio, an increase of 16%. This
portfolio offers good opportunities for growth as a significant component of
in-place leases are well below market rents and have near term lease expiries.
The in-place lease rents across the portfolio average $11.08 per square foot.
    Realex acquired its interest for aggregate consideration of $23,000,000
excluding acquisition costs. The purchase price was satisfied by assumption of
existing mortgages totaling $14,437,500 and by the payment of the balance in
cash. The assumed mortgages will be replaced with a new mortgage, secured by
all five properties, in an initial amount of $14,437,500. The new mortgage
will bear interest at the average Bankers' Acceptances rate plus 1.5%, are
repayable in monthly payments of interest only and will have a term of three
    Realex's interest in the properties is held by way of a general
partnership with a subsidiary of GE Real Estate. 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
continuing discussions in respect of internalizing management.

    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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