Alexis Nihon Real Estate Investment Trust

Alexis Nihon Real Estate Investment Trust

January 31, 2007 17:18 ET

Alexis Nihon REIT Mails Documentation For February 22 Meeting

MONTREAL, QUEBEC--(CCNMatthews - Jan. 31, 2007) - Alexis Nihon Real Estate Investment Trust ("Alexis Nihon") (TSX:AN.UN) announced today its Notice of Meeting and Information Circular for the special meeting of unitholders of Alexis Nihon to be held on February 22, 2007 has been mailed to all holders of record of units of Alexis Nihon as at January 25, 2007, being the record date for determining those unitholders entitled to receive notice of and vote at the meeting.

As previously announced, Alexis Nihon has entered into a second amendment to the combination agreement with Cominar Real Estate Investment Trust ("Cominar") on January 24, 2007 to provide, among other things, for an increase in the consideration under the cash component of Cominar's offer from $17.00 to $18.50 per tendered unit of Alexis Nihon. Under terms of the increased cash offer, the maximum amount of cash available would be increased to $138.75 million, subject to pro-ration. In addition, the Cominar cash offer expiry time has been extended to 5 p.m. ET on February 22, 2007.

Cominar's notice of variation and extension of the cash offer dated January 26, 2007 and Alexis Nihon's notice of change to trustees' circular dated January 26, 2007 have also been mailed on January 29, 2007 to unitholders of record of Alexis Nihon at the close of business on December 20, 2006.

The increased cash offer forms an integral part of the transactions pursuant to which Cominar proposes to acquire units of Alexis Nihon and all or substantially all of the assets of Alexis Nihon (the "Combination").

As previously announced, Alexis Nihon has cancelled its special meeting of unitholders scheduled for January 29, 2007 at 10:00 a.m. in light of Cominar's increased cash offer and has called the special meeting of unitholders to be held on February 22, 2007 to consider and, if deemed advisable, to adopt a special resolution (the "Exchange Resolution") approving, among other things, the Combination and the related amendments to Alexis Nihon's contract of trust.

The trustees of Alexis Nihon unanimously recommend (with Robert A. Nihon abstaining) that all unitholders of Alexis Nihon vote in favour of the Exchange Resolution and that those Alexis Nihon unitholders who wish to sell their units of Alexis Nihon for cash on a taxable basis for Canadian income tax purposes (subject to pro-ration, if applicable) should also accept and tender their units of Alexis Nihon units to Cominar's increased cash offer.

All unitholders of Alexis Nihon who support the Combination (including Alexis Nihon unitholders who accept the increased cash offer) should indicate their approval of the Exchange Resolution by completing and returning the form of proxy provided with the information circular mailed today instructing the proxyholder to vote their Alexis Nihon units in favour of the Exchange Resolution at the meeting. Proxies already received for the special meeting that was to be held on January 29, 2007 are not valid for the meeting.

Holders of 6.20% of Alexis Nihon convertible debentures due June 30, 2014, convertible at a conversion price of $13.65 per Alexis Nihon unit, are encouraged to convert their debentures and to participate in either the cash offer or the exchange component of the transaction and may contact the Depositary, Computershare Investor Services Inc., for more information in that regard. The documentation that was mailed to Alexis Nihon unitholders should also be mailed to the Alexis Nihon debentureholders shortly.

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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