Temple REIT announces public offering of secured convertible debentures


WINNIPEG, Nov. 4 /CNW/ - Temple Real Estate Investment Trust ("Temple REIT") (TSX-V: TR.UN) announced today that it has filed a preliminary short form prospectus dated November 4, 2009 (the "Preliminary Prospectus") in all provinces and territories of Canada, other than Quebec, to qualify the distribution of 5 Year 8.75% Senior Secured Convertible Redeemable Debentures (the "Debentures") in the aggregate principal amount of $10,000,000. The Debentures are convertible into units of Temple REIT at a price of $3.65 per unit. The offering will be made on a best efforts basis by a syndicate of investment dealers led by Wellington West Capital Inc. and including Dundee Securities Corporation, Raymond James Ltd., HSBC Securities (Canada) Inc., Blackmont Capital Corporation and Desjardins Securities Inc. (collectively, the "Agents"). Temple REIT has also granted the Agents an over-allotment option exercisable for 30 days from the date of closing of the offering to offer for sale up to an additional $1,500,000 principal amount of Debentures on the same terms and conditions as set forth above.

Temple REIT will apply to the TSX Venture Exchange (the "Exchange") to list the Debentures sold pursuant to the offering and the trust units issuable upon conversion of the Debentures. Listing is subject to Temple REIT satisfying all requirements of the Exchange. The Debentures will be offered in each of the provinces and territories of Canada, other than Quebec, and by way of private placement in the United States.

Temple REIT intends to use the net proceeds of the offering to prepay the balance owing on a second mortgage secured by the Clearwater Hotel in Fort McMurray, Alberta and to repay certain other mortgage financing as well as for general working capital purposes.

Temple REIT is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbols TR.UN (trust units), TR.DB.A and TR.DB.B (convertible debentures). The objective of Temple REIT is to provide Unitholders with stable cash distributions from investment in a geographically diversified Western Canadian portfolio of hotel properties and related assets.. 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.

This press release is not an offer of securities for sale in the United States, the securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer and will contain detailed information about the company and management, as well as financial statements.

SOURCE Temple Hotels Inc.

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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