InStorage Real Estate Investment Trust
TSX VENTURE : IS.UN

InStorage Real Estate Investment Trust

April 05, 2007 18:08 ET

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

TORONTO, ONTARIO—-(Marketwire – April 5, 2007) -

Attention Business Editors:

InStorage Real Estate Investment Trust (the "REIT") (TSX VENTURE:IS.UN) announced today the closing of its previously announced acquisition of the StorageNOW portfolio of 11 high quality self-storage properties located in Alberta, Saskatchewan and Ontario, for an aggregate purchase price of $110.0 million.

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 have a gross rentable area of approximately 661,000 and house approximately 6,300 storage units.

The purchase price for the acquisition was satisfied with $38.5 million in cash and $71.5 million in first mortgage financing. The purchase price includes an income guarantee of $2.9 million which will be held in escrow. Amounts can be drawn from escrow by the REIT on a monthly basis to the extent of the shortfall between actual net operating income and expected net operating income at stabilized levels of occupancy for certain properties.

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. Including the properties acquired today, the REIT indirectly owns 36 self-storage properties located in Alberta, Saskatchewan and Ontario, and is the second largest owner/operator of self storage facilities in Canada. The completion of the acquisition described above further solidifies 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.

Contact Information

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