Calloway Real Estate Investment Trust

Calloway Real Estate Investment Trust

February 24, 2005 11:09 ET

Calloway Real Estate Investment Trust Announces Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CALLOWAY REAL ESTATE INVESTMENT TRUST

TSX SYMBOL: CWT.UN

FEBRUARY 24, 2005 - 11:09 ET

Calloway Real Estate Investment Trust Announces
Private Placement

CALGARY, ALBERTA--(CCNMatthews - Feb. 24, 2005) - Calloway REIT
(TSX:CWT.UN) today announced that it has closed the sale of 3,101,000
Subscription Receipts at a price of $19.35 per Subscription Receipt for
gross proceeds of $60,004,350. The proceeds will be used to partially
fund the cash component of the purchase price of the second tranche (8
shopping centres) of the previously announced acquisition of 14 shopping
centres developed by FirstPro Shopping Centres and owned by FirstPro and
Wal-Mart (the "Acquisition"). Each Subscription Receipt will entitle the
holder to receive one Unit of Calloway upon closing of the Acquisition.

The sale, co-led by CIBC World Markets Inc. and TD Securities Inc., and
including Desjardins Securities Inc. and Canaccord Capital Corporation,
was completed by way of a private placement subject to applicable resale
restrictions pursuant to Multilateral Instrument 45-102, Resale of
Securities.

Calloway Real Estate Investment Trust is an unincorporated closed-end
real estate investment trust focused on the acquisition of high quality
retail properties.

This press release contains "forward looking statements" subject to
various significant risks and uncertainties which may cause actual
results, performances or 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 acquisitions,
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.

Not for distribution to U.S. News wire services or dissemination in the
U.S.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Calloway Real Estate Investment Trust
    J. Michael Storey
    President and Chief Executive Officer
    (403) 266-6437
    (403) 266-6522 (FAX)
    Website: www.callowayreit.com
    or
    Calloway Real Estate Investment Trust
    310, 855 - 8th Avenue S.W.
    Calgary, Alberta T2P 3P1
    The Toronto Stock Exchange neither approves nor disapproves of the
    contents of this Press Release.