Temple REIT announces filing of final prospectus for a minimum $18 million and a maximum $30 million offering of convertible redeemable debentures


    WINNIPEG, March 26 /CNW/ - Temple Real Estate Investment Trust ("Temple
REIT") (TSX-V: TR.UN) is pleased to announce that it has filed its final short
form prospectus (the "Final Prospectus") relating to an offering (the
"Offering") to the public of 5 Year 8.5% Series B Convertible Redeemable
Debentures (the "Debentures"), in the minimum aggregate principal amount of
$18,000,000 up to a maximum aggregate principal amount of $30,000,000.
    The price of the Debentures has been set at $100 per Debenture. Each
Debenture will be convertible at the Debentureholder's option into fully-paid
units of the REIT ("Units") at any time prior to the close of business on the
earlier of the maturity date, or if called for redemption, on the business day
immediately preceding the date fixed by Temple REIT for redemption of the
Debentures, at a conversion price of $7.50 per Unit, being a ratio of 13.3333
Units per $100 principal amount of Debentures, subject to adjustment upon the
occurrence of certain events. The Debentures will not be redeemable until
April 30, 2011 at the earliest.
    The Offering is being made on a best efforts basis by a syndicate of
investment dealers led by Blackmont Capital Inc. and including Dundee
Securities Corporation, National Bank Financial Inc., Raymond James Ltd.,
Wellington West Capital Inc., HSBC Securities (Canada) Inc. and Thomas Weisel
Partners Canada Inc.
    Temple REIT intends to use approximately $10,000,000 of the net proceeds
of the Offering to partially fund the $24,000,000 purchase price for the
acquisition of the Best Western Wayside Inn & Suites, a 130-room full service
hotel property located at 5411 - 44 Street in Lloydminster, Alberta. The
balance of the purchase price will be funded from the proceeds of mortgage
financing. Temple REIT intends to use the balance of the net proceeds of the
Offering to fund additional acquisitions of income-producing hotel properties
and for general purposes.
    Temple REIT is a real estate investment trust, which is listed on the TSX
Venture Exchange under the symbol TR.UN. The objective of Temple REIT is to
provide Unitholders with stable cash distributions from investment in a
geographically diversified portfolio of hotel properties, primarily in Canada.
There are currently 10,152,811 trust units outstanding. For further
information on Temple REIT, please visit our website at www.treit.ca.

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

    This press release contains forward-looking statements. Temple REIT is
    subject to significant risks and uncertainties which may cause the actual
    results, performance or achievements to be materially different from any
    future results, performance or achievements expressed or implied in these
    forward-looking statements. Such risk factors include, but are not
    limited to, risks associated with real property ownership, the impact of
    general economic conditions, industry conditions, interest rate
    fluctuations, tax-related risk factors, governmental regulation,
    environmental risks, competition from other industry participants, stock
    market volatility, the ability to access sufficient capital from internal
    and external sources and the risk of fluctuation and variation in actual
    operating results, which variation may be material. Temple REIT cannot
    assure investors that actual results will be consistent with any forward-
    looking statement and does not assume any obligation to update or revise
    such forward-looking statements to reflect actual events or new
    circumstances, except as expressly required by applicable
    securities laws.

For further information:

For further information: Arni Thorsteinson, Chief Executive Officer, or
Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax: (204) 452-5505,
Email: info@treit.ca

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