InStorage Real Estate Investment Trust
TSX VENTURE : IS.UN

InStorage Real Estate Investment Trust

November 09, 2006 16:20 ET

InStorage REIT Announces Expansion Into Alberta and Additional Acquisition Update

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2006) - InStorage Real Estate Investment Trust (the "REIT" or "InStorage") (TSX VENTURE:IS.UN) announced today that it has acquired two additional self storage properties. The first property, located at 15216 5th Street SW in Calgary, Alberta, was acquired for a purchase price of approximately $8.45 million. This property was acquired on October 12, 2006 and adds approximately 48,580 square feet of self-storage space to the REIT's portfolio of self-storage properties.

The second property, located at 370 Herchimer Avenue in Belleville, Ontario, was acquired for a purchase price of approximately $2.2 million. This acquisition closed on September 21, 2006 and adds approximately 24,560 square feet of self-storage space to the REIT's portfolio of self-storage properties.

On October 13, 2006 InStorage waived conditions on the purchase of two additional properties subject only to customary closing conditions. The two properties are located in Edmonton, Alberta and are scheduled to close on November 15, 2006 for an aggregate purchase price of $5.5 million. These properties will add approximately 98,150 square feet of self-storage space to the REIT's portfolio of self-storage properties.

In addition, InStorage agreed to provide mezzanine loan financing to InScotia Developments LP and Talus Capital Corp. in the principal amount of $5,552,000. On or about November 15, 2006, $2,000,000 will be funded under the loan and the balance of $3,552,000 is expected to be funded in March 2007. The purpose of the loan is to provide InScotia Developments LP and Talus Capital Corp. with financing to acquire and develop an 80,850 square foot self-storage facility in Calgary. The interest rate payable under the loan is 10% per annum. The maximum term of the loan is 5 years.

InStorage Real Estate Investment Trust

InStorage REIT is an unincorporated open-end real estate investment trust that invests primarily in self-storage properties and ancillary businesses throughout Canada. Including the completed acquisitions described above, the REIT indirectly owns and operates 17 self-storage properties located in Ontario and Alberta.

Additional information concerning InStorage REIT may be obtained 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 to complete the transactions mentioned above, as disclosed or at all, and the development intentions with respect to the aforementioned self-storage property in Calgary. 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 of the REIT and its subsidiaries to obtain necessary mortgage financing, satisfy conditions under the transaction agreements; 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 "Risk Factors" in SCOSS Capital Corp.'s Management Information Circular dated June 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