Calloway Real Estate Investment Trust

Calloway Real Estate Investment Trust

March 31, 2006 08:12 ET

Calloway Real Estate Investment Trust Announces Issuance of $226 Million of Trust Units

TORONTO, ONTARIO--(CCNMatthews - March 31, 2006) -

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Calloway Real Estate Investment Trust ("Calloway")(TSX:CWT.UN) announced today that it has agreed to issue, on a bought deal basis, 8,500,000 trust units (the "Units") for $26.60 per Unit for gross proceeds of approximately $226 million. Calloway has granted the underwriters an option (the "Underwriters' Option"), exercisable until 48 hours prior to closing, to purchase up to an additional 900,000 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 940,000 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, except Quebec. Closing is expected to occur on or about April 13, 2006, subject to regulatory approval. Purchasers of the Units under this offering will be entitled to receive the distribution expected to be paid on May 15, 2006 to unitholders of record on April 28, 2006.

The net proceeds from the offering will be used by Calloway to pay down its line of credit, to finance future acquisitions and for general trust purposes.

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
    (905) 326-0783 (FAX)
    www.callowayreit.com