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Huntingdon REIT announces sale of two retail properties

^{Published on 2009-07-03 10:31:23, Last Modified on 2009-07-03 10:31:30 - Market Wire}
 

 WINNIPEG, July 3 /CNW/ - Huntingdon Real Estate Investment Trust ("HREIT") (TSX: HNT.UN) announced that it has completed the previously announced sale of a retail property in Fort Saskatchewan, Alberta, known as Southfort Square. The property was sold for $1,725,000 and resulted in a gain on sale of approximately $228,000 and net cash to HREIT of approximately $557,000, after expenses and closing adjustments, and the repayment of approximately $1.03 million of first mortgage debt. HREIT utilized the majority of the net cash from the sale to repay other higher cost interim mortgage debt. HREIT also announced that it has entered into an unconditional agreement to sell a retail centre in Peterborough, Ontario, known as Willowcreek Centre for $7.25 million. The sale is expected to result in net cash to HREIT of approximately $2.6 million, after expenses and closing adjustments, and the repayment of approximately $4.4 million of first mortgage debt. The sale is scheduled to close on September 1, 2009. HREIT will use the net cash proceeds from the sale to improve working capital. HREIT expects to record a gain on the transaction of approximately $500,000. Pursuant to HREIT's previously announced plans to divest assets and reduce debt, additional property sales are under conditional contract or sale listings and are expected to close during the second half of 2009. HREIT is a real estate investment trust, which is listed on the Toronto Stock Exchange under the symbols HNT.UN (Trust Units) and HNT.DB.C (Series C Convertible Debentures). HREIT owns 71 income producing office, industrial, retail and standalone parking lot properties that have a total gross leaseable owned area of 4.8 million square feet; two land parcels held for development and other development and expansion opportunities within the existing portfolio. The properties are located in Manitoba, Ontario, Saskatchewan, Alberta, British Columbia and Northwest Territories. HREIT also owns CRESI Inc., a third party property management business. For further information on HREIT, please visit our website at [ www.hreit.ca ]. The Toronto Stock Exchange has not reviewed or approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release. 

For further information: Arni Thorsteinson, President & Chief Executive Officer, or Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax: (204) 452-5505, Email: [ info@hreit.ca ]