Alexis Nihon Real Estate Investment Trust
TSX : AN.UN

Alexis Nihon Real Estate Investment Trust

May 31, 2006 18:07 ET

Alexis Nihon Announces $4.0 Million Acquisition of Industrial Property in Montreal

MONTREAL, QUEBEC--(CCNMatthews - May 31, 2006) - Alexis Nihon REIT (TSX:AN.UN) today announced the acquisition of a multi-tenant industrial property in the Montreal borough of St. Laurent. The acquisition price of $4.0 million represents a going-in capitalization rate of approximately 8.5%.

"This property has the advantage of convenient access to Pierre-Elliot Trudeau International Airport and major highways," said Paul J. Massicotte, President and CEO. "The addition adds to our growing strength in industrial real estate in the St. Laurent area, part of our core geographic area of Montreal."

Total leasable area of the property is 60,351 square feet, of which 34,651 square feet is industrial space, having a ceiling height of approximately 30-feet, and 25,700 square feet is office space. The acquisition price equates to $67 per square foot. The property, located at 5055 Levy, is 100% occupied by three tenants. The purchase price will be funded by the REIT's credit facilities. In the near future, the REIT intents to put long term financing on the property.

The addition increases the industrial segment of the portfolio by 0.4% to 3,771,490 square feet. Following the acquisition, the asset allocation within the REIT's portfolio consists of the following:



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Asset class No. of properties Square footage Per cent of total
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Industrial 32 3,771,490 43.6%
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Office 20 2,987,677 34.6%
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Retail 10 1,585,845 18.3%
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Residential(1) 0 300,321 3.5%
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(1)Residential apartments are located in Place Alexis Nihon, classed
as an office property.


About Alexis Nihon REIT

The REIT currently owns interests in 62 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 8.6 million square feet of leasable area, of which 0.4 million square feet is co-owned.

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