InStorage Real Estate Investment Trust
TSX VENTURE : IS.UN

InStorage Real Estate Investment Trust

December 29, 2006 11:11 ET

InStorage REIT Closes $30 Million Bought Deal Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Dec. 29, 2006) -

NOT FOR DISTRIBUTION ON U.S. WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Attention Business Editors:

InStorage Real Estate Investment Trust (the "REIT") (TSX VENTURE:IS.UN) announced today that it has closed its previously announced bought deal private placement. Under the offering, 23,098,000 trust units ("Trust Units") were issued at a price of $1.30 per Trust Unit for gross proceeds to the REIT of $30,027,400. The Trust Units sold under the offering are subject to a four-month hold period pursuant to applicable securities laws.

Canaccord Adams acted as underwriter for the REIT under the private placement and earned a commission of 5% of the gross proceeds of the offering. The REIT intends to use the proceeds of the offering to partially satisfy the cash portion of its investments in the Stor edge Self Storage portfolio of properties that are scheduled to close on February 15, 2007, for general purposes and for future acquisitions.

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 and/or operates 20 self-storage properties located in Ontario and Alberta.

Additional information concerning the REIT may be obtained on the REIT's website, www.instoragereit.com, 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 the intention to complete the investments mentioned above, as previously disclosed or at all. 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, its subsidiaries and InScotia Developments LP to obtain necessary financing and satisfy conditions under applicable 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 "Risks and Uncertainties" in the Management's Discussion and Analysis of the REIT for the interim period ended September 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
    Website: www.instoragereit.com