InStorage Real Estate Investment Trust
TSX VENTURE : IS.UN

InStorage Real Estate Investment Trust

February 19, 2007 08:00 ET

InStorage REIT Announces $110 Million Acquisition of 11 Self-Storage Properties

TORONTO, ONTARIO--(Marketwire - Feb. 19, 2007) -

Attention Business Editors:

InStorage Real Estate Investment Trust (the "REIT") (TSX VENTURE:IS.UN) announced today that it has agreed to purchase a portfolio of 11 high quality self-storage properties located in Alberta, Saskatchewan and Ontario for an aggregate purchase price of approximately $110.0 million (subject to customary adjustments).

The properties operate under the names "StorageMaxx" in Western Canada and "StorageNOW" and "StorageONE" in Ontario. Two of the properties are located in Alberta, at 13303 Fort Road, Edmonton and 4201 52nd Street SE, Calgary. Three of the properties are located in Saskatchewan, at 901 1st Avenue North, Saskatoon, 3010 11th Street West, Saskatoon, and 495 Maxwell Crescent, Regina. The remaining six properties are located in Ontario, at 110 Bell Farm Road, Barrie, 990 Syscon Road, Burlington, 605 Alden Road, Markham, 110 Guided Court, Etobicoke, 144 Norseman Street, Etobicoke, and 120 Wicksteed Avenue, Toronto. Collectively, the properties house approximately 5,900 storage units.

The 11-property portfolio will be acquired pursuant to an acquisition agreement between the REIT's subsidiary, InStorage Limited Partnership, and the various related entities which own the properties. The purchase price for the acquisition of the properties will be satisfied with cash and mortgage financing.

The acquisition remains subject to customary closing conditions under the acquisition agreement and to TSX Venture Exchange approval. There can be no assurance that the closing conditions will be satisfied, that exchange approval will be granted or that the acquisition will be completed. If the conditions under the acquisition agreement are fulfilled, the acquisition is scheduled to close on April 5, 2007.

InStorage Real Estate Investment Trust

The REIT is an unincorporated open-ended real estate investment trust that invests primarily in self-storage properties and ancillary businesses throughout Canada. The REIT indirectly owns 24 self-storage properties located in Ontario and Alberta, and is the second largest owner/operator of self-storage facilities in Canada. The completion of the acquisition described above would further solidify the REIT's position as Canada's leading self-storage industry consolidator.

Additional information concerning the REIT may be obtained on the REIT's website, www.instoragereit.ca, and on the SEDAR website at www.sedar.com, under the REIT's profile.

Forward-Looking Information

This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Examples of such statements include the intention or ability of the REIT to complete the acquisition mentioned above, as disclosed or at all. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the ability and desire of the REIT and its subsidiaries to obtain necessary financing and satisfy conditions under the acquisition agreement; the ability and desire of the parties to the acquisition to comply with the terms of the acquisition agreement; the level of activity in the underlying self-storage business of the REIT, the self-storage industry and in the economy generally; consumer interest in the services and products of the REIT's subsidiaries; competition; and anticipated and unanticipated costs. While the REIT anticipates that subsequent events and developments may cause its views to change, it specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the REIT's views as of any date subsequent to the date of this press release. Although the REIT has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the REIT. Additional factors are noted under "Risks and Uncertainties" in the Management's Discussion and Analysis of the REIT for the quarter and year to date period ended September 30, 2006, a copy of which may be obtained on the SEDAR website at www.sedar.com.

Contact Information

  • InStorage Real Estate Investment Trust
    T. James Tadeson
    Chief Executive Officer
    (416) 867-9705
    Website: www.instoragereit.ca