Alexis Nihon Real Estate Investment Trust

Alexis Nihon Real Estate Investment Trust

August 01, 2006 17:36 ET

Alexis Nihon Announces $1.9 Million Acquisition of Industrial Property in Suburban Montreal

MONTREAL, QUEBEC--(CCNMatthews - Aug. 1, 2006) - Alexis Nihon REIT (TSX:AN.UN) today announced the acquisition of an industrial property in Pointe Claire, Quebec. The $1.9 million purchase price represents a going-in capitalization rate of 9.1%.

The property is located on Hymus Boulevard, the borough's main industrial East-West corridor, west of Saint-John's Boulevard. Tenants have ready access to Montreal Island's most important autoroute and abundant retail amenities located nearby.

"This is the second property we have acquired in Pointe Claire this year," said Guy Charron, Executive Vice President and Chief Operating Officer. "In addition to providing the REIT with operational synergies, this property reinforces our strength in the industrial real estate market in the greater Montreal area."

Gross leasable area of the property is 40,000 square feet, with a 19-foot clear ceiling height. The building is occupied by a single tenant, Harwell Packaging, which signed a 10-year lease in January 2006.

The $1.9 million acquisition price equates to $46.88 per square foot of leasable area. The purchase price will be initially funded from the REIT's bank credit facilities, pending arrangement of mortgage financing.

"The going-in cap rate of 9.1% is accretive for a single-tenant property," said Rene Fortin, Senior Vice President and Chief Financial Officer.

The acquisition increases the industrial segment of the portfolio to 4,104,390 square feet. Following the acquisition, the asset allocation within the REIT's portfolio consists of the following:

Asset class No. of properties Square footage Per cent of total
Industrial 34 4,104,390 45.7%
Office 20 2,987,677 33.3%
Retail 10 1,586,122 17.7%
Residential(i) 0 300,321 3.3%

(i) Residential apartments are located in Place Alexis Nihon, classed
as an office property.

About Alexis Nihon REIT

The REIT currently owns interests in 64 office, retail, and industrial properties, including a 426-unit multi-family residential property, all located in the greater Montreal area and the National Capital region. The REIT's portfolio has an aggregate of 9.0 million square feet of leasable area, of which 0.4 million square feet is co-owned.

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