September 07, 2005 08:06 ET

IPC US REIT Announces US$60 Million Offering of Convertible Debentures

TORONTO, ONTARIO--(CCNMatthews - Sept. 7, 2005) - All amounts are expressed in U.S. dollars. NOT FOR DISSEMINATION OVER UNITED STATES NEWSWIRE SERVICES

IPC US REIT (the "REIT") (TSX:IUR.U)(TSX:IUR.UN) has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets, CIBC World Markets and Desjardins Securities Inc., to issue to the public, on a bought-deal basis, US$60 million principal amount of convertible unsecured subordinated debentures (the "Debentures") at a price of US$1,000 per Debenture.

The Debentures will mature on September 30, 2012, carry a coupon of 5.75% and a conversion price of US$11.00. The REIT will use the net proceeds of the offering to repay its acquisition line and fund prospective acquisitions. The issue will be offered in all Canadian provinces. Closing of the offering is expected to occur on September 23, 2005, and is subject to regulatory approvals.

The Debentures being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the Debentures may not be offered or sold to U.S. residents except pursuant to applicable exemptions from registration.


IPC US REIT is the only real estate investment trust in Canada that invests exclusively in U.S. commercial real estate. The REIT beneficially owns an 88.1% interest in IPC (US), Inc. and IPC (US), II Inc. (collectively "IPC US") which have ownership interests in a portfolio of 37 office and retail buildings comprising a total of 10.4 million square feet of rentable space. In addition, IPC US holds a $51-million preferred equity investment in the Bank of America Center, a 1.8-million-square-foot office complex located in the financial core of San Francisco.

The units of the REIT are listed on the Toronto Stock Exchange under the symbol "IUR.UN" for Canadian dollar quoted units and "IUR.U" for U.S. dollar quoted units. For more information on IPC US REIT, please visit the REIT's website at www.ipcreit.com.

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