Scott's Real Estate Investment Trust
TSX : SRQ.UN

February 03, 2010 15:57 ET

Scott's Real Estate Investment Trust Announces $15.0 Million Treasury Financing and $3.1 Million Secondary Offering

TORONTO, ONTARIO--(Marketwire - Feb. 3, 2010) -

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES

Scott's Real Estate Investment Trust (TSX:SRQ.UN) ("Scott's REIT" or the "Company") today announced that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. and Dundee Securities Corporation to issue to the public, subject to regulatory approval, on a bought deal basis, 1,974,000 trust units of the Company from treasury and 410,527 trust units of the Company owned by Obelysk Inc. ("Obelysk") (the "Trust Units"). The Trust Units will be offered at a price of $7.60 per Trust Unit, for gross proceeds to Scott's REIT of $15,002,400 and for gross proceeds to Obelysk of $3,120,005. Scott's REIT has also granted the underwriters an over-allotment option to purchase up to 296,100 additional Trust Units, representing 15% of the size of the treasury offering. The over-allotment option may be exercised up to 30 days after the closing of the offering.

The net proceeds from the offering (after deducting the Underwriters' fee and offering expenses) will be used to fund future acquisitions and for general business purposes.

Scott's REIT will, by February 9, 2010, file with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, a preliminary short form prospectus relating to the issuance of the Trust Units. Closing of the offering is expected to take place on or about February 24, 2010.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the United States absent registration or pursuant to applicable exemption from registration. 

About Scott's Real Estate Investment Trust

Scott's REIT (TSX:SRQ.UN) is Canada's premier small-box retail property owner with 207 commercial properties in seven provinces across Canada. Scott's REIT's properties are well-located and geographically diverse across Canada and nearly all properties are long-term quadruple net leases. The REIT has an approximately 68.9 per cent interest in Scott's Real Estate LP. To find out more about Scott's Real Estate Investment Trust (TSX:SRQ.UN), visit our website at http://www.scottsreit.com.

Forward-looking Statements

This media release contains forward-looking statements. Such statements are based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from projections suggested in any forward-looking statements due to factors such as the competitive nature of the quick service restaurant industry, the ability of Scott's REIT and Scott's Real Estate LP to execute a growth and development strategy, the reliance of Scott's REIT and Scott's Real Estate LP on key personnel, and risk associated with the structure of income trusts. Scott's REIT assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements, except as required by law. Additional information identifying risks and uncertainties is contained in Scott's REIT's filings with the Canadian securities regulators, available at www.sedar.com.

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