Calloway Real Estate Investment Trust

Calloway Real Estate Investment Trust

June 02, 2005 18:24 ET

Calloway Real Estate Investment Trust Announces Private Placement

CALGARY, ALBERTA--(CCNMatthews - June 2, 2005) -

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

Calloway REIT (TSX:CWT.UN) today announced that it has agreed to issue, 6,300,000 Subscription Receipts at a price of $19.85 per Subscription Receipt for gross proceeds of $125,055,000. The proceeds will be used to partially fund the cash component of the purchase price of the previously announced acquisition of 35 shopping centres developed by FirstPro Shopping Centres and owned by FirstPro and Wal-Mart and 10 parcels of development lands from FirstPro (the "Acquisition"). Each Subscription Receipt will entitle the holder to receive one Unit of Calloway upon closing of the Acquisition.

The sale, led by CIBC World Markets Inc. and including Scotia Capital Inc., Desjardins Securities Inc., RBC Capital Markets, Merrill Lynch Canada Inc. and National Bank Financial Inc., will be completed by way of a private placement subject to applicable resale restrictions pursuant to Multilateral Instrument 45-102, Resale of Securities. The sale is scheduled to close on June 22, 2005. The agents have the option to sell an additional 2,520,000 Subscription Receipts at $19.85 per Subscription Receipt until June 10, 2005 thereby increasing the gross proceeds to $175,077,000.

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.

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

Contact Information

  • Calloway Real Estate Investment Trust
    J. Michael Storey, President and Chief Executive Officer
    310, 855 - 8th Avenue S.W.
    Calgary, Alberta T2P 3P1
    (403) 266-6437
    (403) 266-6522 (Fax)