InStorage Real Estate Investment Trust
TSX VENTURE : IS.UN

InStorage Real Estate Investment Trust

May 07, 2007 08:00 ET

InStorage REIT Completes $111.6 Million Investments in 11 Self-Storage Properties

TORONTO, ONTARIO—-(Marketwire – May 7, 2007) -

Attention Business Editors:

InStorage Real Estate Investment Trust (the "REIT") (TSX VENTURE:IS.UN) announced today that, together with InScotia Developments LP ("InScotia Developments"), it has completed its previously announced acquisition of the "Apple Self Storage" portfolio of 11 high quality self-storage properties located in Ontario and Quebec. Pursuant to the acquisition, the REIT acquired 10 self-storage properties (the "REIT Properties") for an aggregate purchase price of approximately $111.6 million and InScotia Developments purchased the eleventh property for a purchase price of approximately $1,150,000.

The REIT Properties operate under the names "Apple Self Storage" in Ontario and "Forteresse" and "SecureMax" in Quebec. They are located in Ontario, at 140 Armstrong Avenue, Georgetown, 2032 Commerce Park Drive, Innisfil, 10345 Keele Street, Maple, and 81 Arrow Road, 25 Crouse Road, 875 Don Mills Road and 555 Trethewey Drive, Toronto. The remaining three REIT Properties are located in Quebec, at 745 St. Martin Ouest Blvd, Laval, 9265 Pascal Gagnon Blvd., Montreal and 2249 Leon-Harmel Street, Quebec City. Collectively, the REIT Properties have a gross rentable area of approximately 725,000 square feet and house approximately 6,050 storage units. The purchase price for the acquisition of the REIT Properties was satisfied with approximately $55.0 million in cash and approximately $56.6 million in first mortgage financing.

"We are very pleased to complete another key acquisition. The Apple portfolio establishes our presence in Quebec in a meaningful way and further strengthens our position in Ontario. Most significantly, this milestone acquisition brings our portfolio to 46 self-storage properties in total and makes InStorage REIT the largest owner/operator of self-storage facilities in Canada" said T. James Tadeson, Chief Executive Officer.

The REIT also funded InScotia Developments with mezzanine loan financing in the principal amount of approximately $980,000 (the "Mezzanine Loan") provided by its subsidiary, InStorage Limited Partnership ("InStorage LP"). InScotia Developments used the proceeds of the Mezzanine Loan, together with its own equity, to acquire the eleventh Apple Self Storage property located on Walkley Road in Ottawa. The REIT is also committed to provide InScotia Developments with further mezzanine financing in the amount of $693,000 in the future to fund development costs associated with the Walkley Road property. The terms of the Mezzanine Loan were described in the REIT's press release dated March 16, 2007.

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 has grown its portfolio to 46 self-storage properties located in Alberta, Saskatchewan, Ontario and Quebec. The completion of today's acquisition makes the REIT the largest owner/operator of self-storage facilities in Canada and confirms its status as the country'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