InStorage Real Estate Investment Trust
TSX VENTURE : IS.UN

InStorage Real Estate Investment Trust

February 15, 2007 19:57 ET

InStorage REIT Closes Investments in Seven Self-Storage Properties

TORONTO, ONTARIO--(Marketwire - Feb. 15, 2007) -

Attention Business Editors:

InStorage Real Estate Investment Trust (the "REIT") (TSX VENTURE:IS.UN) announced today the closing of its investments in seven properties comprising a portion of the Stor edge Self Storage portfolio located in Western Canada.

As a result of today's closing, the REIT has acquired four self-storage properties (the "REIT Properties") for an aggregate purchase price of approximately $27.3 million. Three of the REIT Properties are located in Alberta, at 11807 40th Street SE, Calgary, 4687 Barlow Trail SE, Calgary and 241201 Range Road 34, Okotoks. The fourth property acquired today by the REIT was previously expected to be purchased by InScotia Developments Limited Partnership ("InScotia Developments") and is located at 2750 Sandra Schmirler Way, Regina, Saskatchewan. Collectively, the REIT Properties account for approximately 249,000 net rentable square feet and house approximately 1,800 storage units. The purchase price for the acquisition of the REIT Properties was satisfied with approximately $13.1 million in cash and approximately $14.3 million in first mortgage financing.

The REIT also funded InScotia Developments at today's closing with mezzanine loan financing in the principal amount of approximately $5.3 million (the "Mezzanine Loan") provided by its subsidiary, InStorage Limited Partnership ("InStorage LP"). InScotia Developments used the proceeds of the Mezzanine Loan, together with other financing, to acquire three of the Stor edge Self Storage properties for an aggregate purchase price of approximately $11.1 million. The terms of the Mezzanine Loan were described in the REIT's press release dated January 25, 2007.

The remaining three Stor edge Self Storage properties (the "Final Development Properties") are expected to be acquired by InScotia Developments on or before May 31, 2007, when certain outstanding title-related approvals are obtained, for an aggregate purchase price of approximately $5.5 million. In addition, the development costs associated with the Final Development Properties are estimated to be approximately $11.1 million. InStorage LP has committed to provide InScotia Developments with additional mezzanine loan financing in the principal amount of approximately $5.3 million at the closing of the acquisition of the Final Development 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. The REIT indirectly owns and/or operates 24 self-storage properties located in Ontario and Alberta, 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.

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 or the ability of the InScotia Developments to acquire the Final Development Properties, the intention or the ability of the REIT or InStorage LP to provide the additional mezzanine loan financing described above (as disclosed or at all), and the related rights and obligations of the parties to the transactions. 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, its subsidiaries and InScotia Developments to obtain necessary financing and satisfy conditions under applicable transaction agreements; the ability and desire of the parties to the transactions to comply with the terms of the transaction agreements; the level of activity in the underlying business of the REIT or of InScotia Developments, 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 quarter and year to date 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.ca