Alexis Nihon Real Estate Investment Trust

Alexis Nihon Real Estate Investment Trust

January 15, 2007 06:00 ET

Alexis Nihon REIT Announces Adoption of Unitholder Rights Plan

MONTREAL, QUEBEC--(CCNMatthews - Jan. 15, 2007) - Alexis Nihon Real Estate Investment Trust (the "REIT" or "Alexis Nihon REIT") (TSX:AN.UN) announced today it has enacted a unitholder rights plan on January 14, 2007, effective as of that date.

The plan is designed to prevent a creeping takeover of the REIT, which is the acquisition of control through a progressive increase in ownership without an offer to all unitholders. The Board of Trustees believes a creeping takeover would be detrimental to the best interests of the unitholders and the REIT, and the plan gives the Board an effective tool in responding to such an initiative. The plan also enables the REIT to obtain the best value for all unitholders and provides the unit ownership stability to protect the opportunity for all unitholders to participate in the existing transaction with Cominar Real Estate Investment Trust ("Cominar") or any other future transaction involving the REIT.

The rights plan will not prevent an offer made to all unitholders for all of their units, and will not have any impact on the takeover bid of Cominar forming part of the combination previously announced on December 4, 2006.

The rights issued under the rights plan will become exercisable when a person, together with any parties related to it, acquires or announces its intention to acquire 20% or more of the REIT's outstanding units without complying with the "Permitted Bid" provisions of the rights plan or without approval of the Board of the REIT. Should such an acquisition occur, rights holders (other than the acquiring person and related persons) can purchase units of the REIT at half the prevailing market price at the time the rights become exercisable.

Under the rights plan, a Permitted Bid is a bid made to all holders of the REIT's units for all of their units which provide that the offeror may take up and pay for the units only if at least 50% of the outstanding units, other than those owned by the offeror and certain related parties, have been tendered.

The rights have been issued on January 14, 2007 to holders of record at 6:00 p.m. on Friday, January 12, 2007. The issuance of the units upon exercise of the rights is subject to receipt of certain regulatory approvals. The rights plan will terminate on July 13, 2007.

Advisory Support

The REIT has retained the services of CIBC World Markets Inc. as financial advisors and Fasken Martineau DuMoulin LLP as legal advisors.

About Alexis Nihon REIT

The REIT currently owns interests in 65 office, retail, and industrial properties, including a 426-unit multi-family residential property, located in the greater Montreal area and the National Capital Region. The REIT's portfolio has an aggregate of 9.1 million square feet of leasable area, of which 0.4 million square feet is co-owned.

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