Calloway Real Estate Investment Trust
TSX : CWR.UN
TSX : CWT.DB

Calloway Real Estate Investment Trust

December 21, 2006 11:42 ET

Calloway Closes Three More Properties in Ontario

TORONTO, ONTARIO--(CCNMatthews – Dec. 21, 2006) –

Attention Business Editors:

Calloway Real Estate Investment Trust (TSX:CWT.UN)(TSX:CWT.DB) announced it has closed an additional three properties as part of its previously announced transaction. Two shopping centres remain under contract and are expected to close in early 2007.

Two of the three are development properties located in Ontario. Both will be anchored by Wal-Mart and will comprise of approximately 450,000 square feet of retail space on completion. Calloway also acquired a 100% leasehold interest in a 400,000 square foot shopping centre in Oshawa, Ontario, with an option to purchase the freehold interest at the end of a 49 year term. The centre is anchored by Wal-Mart, Loblaws and Home Depot (shadow-anchor, 115,000 square feet), and comprises of 515,000 square feet of built space and undeveloped lands to allow an additional 150,000 square feet of retail space. Upon completion the centre will total 665,000 square feet.

Consideration paid for the three properties totaled $96.6 million, including $6.0 million for the development lands. The purchase price was satisfied by the assumption of debt in the amount of $45.4 million and the balance with cash. In connection with the completion of future development potential at the Oshawa centre, Mr Mitchell Goldhar received an additional 200,000 rights to acquire Units of the REIT at a price per unit ranging from $29.55 to $33.00.

The Toronto Stock Exchange neither approves nor disapproves of the

contents of this Press Release.

This press release contains "forward looking statements" subject to various significant risks and uncertainties which may cause actual results, performances and achievements of Calloway to be materially different from any future results, performances or achievements, expressed or implied by such forward looking statements. Such risk factors include, but are not limited to, risks associated with real property ownership, availability of cash flow, restrictions on redemption, general uninsured losses, future property acquisition, environmental matters, tax related matters, debt financing, Unitholder liability, potential conflicts of interest, potential dilution, and reliance on key personnel. Calloway cannot assure investors that actual results will be consistent with these forward looking statements and Calloway assumes no obligation to update or revise them to reflect new events or circumstances.

Contact Information

  • Calloway Real Estate Investment Trust
    Simon Nyilassy
    President and Chief Executive Officer
    (905) 326-6400