Northern Property Real Estate Investment Trust

Northern Property Real Estate Investment Trust

April 04, 2006 15:36 ET

Northern Property REIT Announces a $70 Million Offering of Trust Units

CALGARY, ALBERTA--(CCNMatthews - April 4, 2006) - Northern Property Real Estate Investment Trust (TSX:NPR.UN) has entered into an agreement with a syndicate of underwriters led by CIBC World Markets Inc. under which they have agreed to buy 3,300,000 Trust Units from the Trust and sell such Trust Units to the public at a price of $21.20 per Trust Unit, representing aggregate proceeds of $69,960,000. The Underwriters will have the option to purchase up to an additional 240,000 Units from treasury, at the same price and commission, exercisable, in whole or in part at any time until 30 days after closing. Closing is expected on or about April 21, 2006.

The net proceeds of this offering will be used by the Trust to fund the acquisition of six properties from AgeCare Investments Ltd. and for general corporate purposes.

Northern Property REIT is an unincorporated open-end real estate investment trust that invests in a portfolio of mainly residential income-producing properties located in the Northwest Territories, Nunavut, northern Alberta, Newfoundland and Labrador, and other areas, much of which is leased to government and large corporations to meet staff housing needs. NPR also invests in commercial premises in Northern Canada leased to government and corporate interests.

The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement of such Act. This release does not constitute an offer for sale of securities in the U.S. and any public offering of securities in the U.S. will be made by means of a prospectus.

Contact Information

  • Northern Property Real Estate Investment Trust
    Ms. Debra Boyle
    Chief Financial Officer
    (403) 531-0720