InStorage Real Estate Investment Trust
TSX VENTURE : IS.UN

InStorage Real Estate Investment Trust

February 27, 2008 17:15 ET

InStorage REIT Announces Opening of Two New Self-Storage Facilities

TORONTO, ONTARIO—-(Marketwire – Feb. 27, 2008) –

Attention Business Editors:

InStorage Real Estate Investment Trust (the "REIT" or "InStorage")(TSX:IS.UN) announced today that it will be opening two new self-storage facilities on March 1, 2008 located in Calgary, Alberta and Windsor, Ontario. In total, the two facilities will add approximately 128,000 square feet of gross leaseable area (GLA) to the REIT's portfolio once they are acquired.

The REIT has entered into a forward-purchase agreement with the developer/owner of the Windsor, Ontario facility whereby InStorage will receive fees for the management of the facility until it is fully stabilized and acquired. The new facility is branded with the new InStorage colours, logos and interior fittings. The property is fully climate-controlled, and contains 48,000 square feet of GLA, with expansion capability to add a further 17,000 square feet of GLA over time. InStorage expects it will acquire the facility upon full stabilization, which is anticipated in 2010.

The Calgary facility, aggregating 80,000 square feet of GLA, was developed by the REIT's development partner InScotia Developments LP. The REIT provided mezzanine loan financing for the construction of the property, and will receive management fees until the facility is fully stabilized and acquired, expected in 2010. The new facility is also fully outfitted with InStorage's new branding package.

"We are pleased to be adding two new branded facilities to our growing network of properties," said T. James Tadeson, Chief Executive Officer. "Our relationship with InScotia continues to provide us with an expanding pipeline of state-of-the-art properties for future acquisition, and we are pleased to be adding this prime facility in central Calgary to our portfolio. In addition, the forward-purchase agreement for the Windsor property allows us to secure the future purchase of a stabilized facility without any up-front investment."

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 is the largest owner/operator of self storage facilities in Canada and is the country's leading self-storage industry consolidator, with a current portfolio of 52 self-storage properties located in Alberta, Saskatchewan, Ontario and Quebec. The REIT's Units (Symbol IS.UN) are traded on the Toronto Stock Exchange.

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 statements with respect to the expected stabilization and acquisition of the properties and the ability to earn management fees therefrom. 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 two new managed properties to reach stabilized occupancy levels; the availability of acquisition financing; 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 offered at the new properties and by the REIT's subsidiaries generally; competition; the ability of the REIT to fulfil its management and other obligations under the aggreements relating to the new properties; 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 the REIT's short form prospectus dated March 28, 2007, 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