InStorage Real Estate Investment Trust
TSX VENTURE : IS.UN

InStorage Real Estate Investment Trust

April 03, 2007 10:01 ET

InStorage REIT Closes $105 Million Bought Deal Equity Financing

TORONTO, ONTARIO--(Marketwire - April 3, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Attention Business Editors:

InStorage Real Estate Investment Trust (the "REIT") (TSX VENTURE:IS.UN) announced today the closing of its previously announced bought deal equity offering of 72,415,000 trust units at a price of $1.45 per unit, for gross proceeds of $105,001,750.

Canaccord Adams led the syndicate of underwriters of the offering that included RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc., National Bank Financial Inc., Blackmont Capital Inc. and Trilon Securities Corporation (the "Underwriters"). The proceeds of the offering will be used to satisfy the cash portion of the purchase price for the REIT's recently announced StorageNOW and Apple Self Storage portfolio acquisitions, to provide cash for future acquisitions and the REIT's mezzanine lending activities and for general corporate purposes. The REIT has also granted the Underwriters an option to purchase additional trust units for a period of 30 days following closing equal to the lesser of 7,241,500 trust units and the Underwriters' over-allocation position as of closing.

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 25 self-storage properties located in Ontario and Alberta, and is presently the second largest owner/operator of self-storage facilities in Canada.

Additional information concerning the REIT may be obtained on the REIT's website, www.instoragereit.ca, or 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 of the REIT to complete the StorageNOW and Apple Self Storage portfolio acquisitions mentioned above and to use the proceeds of the offering to fund future acquisitions and for the REIT's mezzanine lending activities. 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 other necessary financing, satisfy conditions under the transaction agreements and complete the StorageNOW and Apple Self Storage portfolio transactions; the ability and desire of the parties to the transactions to comply with the terms of the transaction agreements; and the availability of future acquisition and mezzanine lending opportunities to the REIT. 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.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

Contact Information

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