InStorage Real Estate Investment Trust
TSX : IS.UN

InStorage Real Estate Investment Trust

November 17, 2008 20:25 ET

InStorage REIT Board of Trustees Provides Update, Maintains Recommendation

TORONTO, ONTARIO--(Marketwire - Nov. 17, 2008) - The Board of Trustees of InStorage Real Estate Investment Trust ("InStorage")(TSX:IS.UN) today provided an update in response to inquiries received from unitholders regarding the status of InStorage's process to review strategic alternatives to the hostile take-over bid made by Canadian Storage Partners, ULC ("Partners ULC") to acquire all of the outstanding trust units of InStorage at a price of $3.75 per unit. As previously expressed, the Board of Trustees has carefully reviewed the offer and believes that it is inadequate and fails to recognize the full value of InStorage.

The Board of Trustees and its advisors are continuing to meet with interested parties who are considering making an offer to unitholders at a price above $3.75 per unit. These discussions have all been confidential and non-binding. While there can be no assurance of an alternative transaction, the Board of Trustees continues to expect a better offer to result from its active pursuit of strategic alternatives.

Although the Partners ULC offer is currently scheduled to expire on Friday, November 21, 2008, Partners ULC will not be in a position to take up and pay for any InStorage units deposited at that date under its offer because of the InStorage Unitholder Rights Plan. Should Partners ULC take up and pay for any InStorage units while the rights plan is in effect, the rights plan would cause substantial dilution of Partners ULC's ownership interest in InStorage. For this reason the Board of Trustees believes Partners ULC will likely extend its bid by at least an additional 10 days, although that will be up to Partners ULC. While the Board of Trustees does not intend to leave the rights plan in effect indefinitely, it is currently serving the useful purpose of allowing the board additional time to speak with interested parties.

The InStorage Board of Trustees continues to recommend that unitholders REJECT the offer and NOT TENDER their units to Partners ULC at a price of $3.75.

InStorage Real Estate Investment Trust

InStorage is an unincorporated open-ended real estate investment trust that invests primarily in self-storage properties throughout Canada. InStorage 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 60 owned self-storage properties located in British Columbia, Alberta, Saskatchewan, Ontario and Quebec.

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

Contact Information

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