Alexis Nihon Real Estate Investment Trust

Alexis Nihon Real Estate Investment Trust

January 24, 2007 21:15 ET

Alexis Nihon REIT Announces Increase to Cash Component of Cominar REIT Offer to $18.50

Special Unitholders Meeting To Be Held February 22

MONTREAL, QUEBEC--(CCNMatthews - Jan. 24, 2007) - Alexis Nihon Real Estate Investment Trust ("Alexis Nihon") (TSX:AN.UN) announced today it has entered into an amendment to the previously announced combination agreement with Cominar Real Estate Investment Trust ("Cominar") to provide for an increase in the consideration under the cash component of Cominar's offer from $17.00 to $18.50 per Alexis Nihon unit tendered. Under the amended offer, the maximum amount of cash available would be increased to $138.75 million, subject to pro-ration.

The other material terms of the proposed transaction, including the exchange ratio of 0.77 of a Cominar unit per Alexis Nihon unit available under the exchange, on a tax-deferred basis, remain unchanged. In addition, the Cominar cash offer expiry time has been extended to 5:00 p.m. ET on February 22, 2007.

At the request of Alexis Nihon and taking into account significant recent unit acquisitions, Cominar has also agreed to waive certain conditions under the Combination Agreement enabling Alexis Nihon to grant access to material non-public information to Summit Real Estate Investment Trust and Homburg Invest Inc.

"We are pleased with the increased cash consideration under the Cominar offer. The Board of Trustees and the Transaction Committee remain committed to maximizing value for Alexis Nihon unitholders," said Gerard A. Limoges, Chairman of the Transaction Committee of the Board of Trustees of Alexis Nihon.

The Board of Trustees of Alexis Nihon has unanimously approved the amendments to the combination agreement and has determined that the amended offer and the exchange are fair to the Alexis Nihon unitholders and reiterated its recommendation that all Alexis Nihon unitholders vote in favour of the combination. The Board of Trustees of Alexis Nihon has received an opinion from CIBC World Markets Inc., its financial advisor, that the revised consideration offered under the transaction is fair from a financial point of view to the unitholders of Alexis Nihon. Robert A. Nihon, Executive Chairman of Alexis Nihon, abstained from the vote.

In view of the above, Alexis Nihon has cancelled its special meeting of unitholders scheduled for January 29, 2007 at 10:00 a.m. ET and has called a new special meeting of unitholders to be held on February 22, 2007 at 10:00 a.m. ET at Centre Sheraton, 1201, Rene-Levesque Blvd. West, Montreal. A new record date to determine those Alexis Nihon unitholders entitled to vote at the special meeting has been set at January 25, 2007. An updated information circular and other relevant documents will shortly be mailed to unitholders.

Update on Unitholder Rights Plan

Alexis Nihon was informed earlier today that because the unitholder rights plan adopted on January 14, 2007 is a short-duration rights plan and is in response to a threatened or anticipated bid, the Toronto Stock Exchange has deferred acceptance of the notice of the Plan until such time as it is satisfied that the Autorite des marches financiers will not intervene under applicable securities regulatory requirements.

Forward-looking Statements

This document may contain forward-looking statements, relating to Alexis Nihon REIT's operations or to the environment in which it operates, which are based on Alexis Nihon REIT's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond Alexis Nihon REIT's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in other public filings. In addition, these forward-looking statements relate to the date on which they are made. Alexis Nihon REIT disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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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