Temple REIT completes acquisition of Yellowknife hotel property

    WINNIPEG, March 23 /CNW/ - Temple Real Estate Investment Trust ("TREIT")
(TSX Venture: TR.UN) announced today it has completed the acquisition of an
80-room hotel property located in Yellowknife, NT for $13 Million, subject to
the usual closing adjustments. The property consists of a four-storey, 60-room
hotel complex, known as Chateau Nova, and a three-storey, 20-room annex, known
as Chateau Nova Suites. Chateau Nova and Chateau Nova Suites were built in
2000 and 2003, respectively. The property offers a full range of services,
including a full-service restaurant, lounge, room service, meeting and
conference rooms, business centre, fitness centre and spa services. Chateau
Nova and Chateau Nova Suites are located across from each other on Franklin
Avenue, the main street of downtown Yellowknife.
    The purchase price of $13 Million, which represents an estimated
capitalization rate of 11%, was funded by the assumption of a first mortgage
loan in the approximate amount of $6.2 Million and the balance in cash. The
interim first mortgage loan bears interest at prime plus 1.5% (currently 7.5%)
and matures in November 2007.

    TREIT is a real estate investment trust, which is listed on the TSX
Venture Exchange under the symbol TR.UN. The objective of TREIT is to provide
Unitholders with stable cash distributions from investment in a geographically
diversified Canadian portfolio of hotel properties and related assets. There
are currently 8,841,837 trust units outstanding. For further information on
TREIT, please visit our website at www.treit.ca.

    This press release contains certain statements that could be considered
as forward-looking information. The forward-looking information is subject to
certain risks and uncertainties, which could result in actual results
differing materially from the forward-looking statements.

    The TSX Venture Exchange has not reviewed or approved the contents of
    this press release and does not accept responsibility for the adequacy or
    accuracy of this press release.

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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