Calloway Real Estate Investment Trust

Calloway Real Estate Investment Trust

November 17, 2006 07:56 ET

Calloway Real Estate Investment Trust Announces Issuance of $225 Million of Trust Units

TORONTO, ONTARIO--(CCNMatthews - Nov. 17, 2006) -

MEDIA RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Calloway Real Estate Investment Trust ("Calloway")(TSX:CWT.UN) announced today that it has agreed to issue, on a bought deal basis, 7,680,000 trust units (the "Units") for $29.30 per Unit for gross proceeds of approximately $225 million. Calloway has granted the underwriters an option (the "Underwriters' Option"), exercisable until 48 hours prior to closing, to purchase up to an additional 1,200,000 units at the same offering price. In addition, Calloway has granted the underwriters an over-allotment option (the "Over-Allotment Option"), exercisable in whole or in part at any time until 30 days after closing, to purchase up to an additional 1,332,000 Units at the same offering price. A syndicate led by CIBC World Markets Inc. and RBC Capital Markets is acting as underwriters for the offering of the Units.

This offering is being made by way of prospectus supplement to be filed in all provinces of Canada. Closing is expected to occur on or about November 30, 2006, subject to regulatory approval. Purchasers of the Units under this offering will be entitled to receive the distribution of $0.125 per unit expected to be paid on December 15, 2006 to unitholders of record on November 30, 2006.

The net proceeds from the offering will be used by Calloway to finance future acquisitions and for general trust purposes.

On October 31, 2006, the Federal Minister of Finance announced a proposed new tax regime for flow-through entities, which would impose tax on certain distributions from certain income funds and REITs. Based on its understanding of the Federal Government's proposed new tax rules, management of Calloway believes that Calloway and its unitholders will likely not be affected by the proposals, although it cannot be certain until the legislation is finalized and passed by Parliament.

Calloway Real Estate Investment Trust is an unincorporated open-end real estate investment trust focused on the ownership and development of high quality retail properties.

The Toronto Stock Exchange neither approves nor disapproves of the contents of this Press Release.

Contact Information

  • Calloway Real Estate Investment Trust
    Simon Nyilassy
    President and Chief Executive Officer
    (905) 326-6400 ext. 7649
    or
    Calloway Real Estate Investment Trust
    Bart Munn
    Chief Financial Officer
    (905) 326-6400 ext. 7631
    Website: www.callowayreit.com