N@N

Huntingdon REIT Completes Substantial Issuer Bid Resulting in Increased Net Book Value Per Unit

^{Published on 2011-09-02 04:11:45 - Market Wire}
 

RICHMOND, BC, Sept. 2, 2011 /CNW/ - Huntingdon Real Estate Investment Trust (the "Trust" or "HREIT") (TSX: HNT.UN) announced today the results of its substantial issuer bid by way of modified "Dutch Auction" (the "Offer"), pursuant to which the Trust offered to purchase for cancellation up to $5.5 million in value of its outstanding trust units (the "Units") from unitholders at a price of not less than $6.80 per Unit and not more than $7.50 per Unit. The Offer expired at 5:00 p.m. (Toronto time) on August 31, 2011.

Based on the final report provided by the depositary for the Offer, a total of 1,986,473 Units were validly deposited and not withdrawn under the Offer. Pursuant to the terms of the Offer, the Trust has determined the purchase price to be $6.95 per Unit. The Trust will take up 791,367 Units for aggregate consideration of $5.5 million. These Units represent approximately 5.6% of the total Units issued and outstanding as of August 31, 2011 and, following the purchase and cancellation of these Units, approximately 13,398,657 Units will remain outstanding. The issuer bid was an accretive transaction for remaining unitholders as the pro forma net book value per Unit as at June 30, 2011 increased by $0.45 per Unit to $14.57 per Unit.

Take-up and payment for all Units validly deposited and accepted for purchase under the Offer will be made as soon as practicable in accordance with the Offer.

The Units deposited but not purchased, including Units invalidly deposited and those deposited by way of auction tenders at a price greater than $6.95, will be returned promptly by the depositary to the depositing unitholder.

The full details of the Offer are described in the Trust's offer to purchase and issuer bid circular dated July 22, 2011, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which are available on SEDAR at [ www.sedar.com ].

The Trust's normal course issuer bid, which was suspended with the announcement of the Offer, is expected to resume on or about September 11, 2011 in accordance with applicable securities laws.

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, directly or indirectly, 77 income producing office, industrial, retail and standalone parking lot properties, including the aviation-related facilities at five of Canada's leading international airports that have a total gross leasable area of 5.5 million square feet; and two land parcels held for development, with other development and expansion opportunities within the portfolio. HREIT has announced that it intends to convert to a corporation.

Forward‐Looking Information:

Certain statements contained in this press release may constitute forward‐looking statements. Forward-‐looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking statements. These risks and uncertainties include, but are not limited to, general and local economic and business conditions; the financial condition of our tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and rate fluctuations. Forward‐looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The forward‐looking statements are subject to risks, uncertainties and other factors that could cause actual results or events to differ materially from current expectations including, but not limited to, the risks detailed from time to time in HREIT's filings with Canadian provincial securities regulators, including its most recent annual information form and management's discussion and analysis available on SEDAR at [ www.sedar.com ]. HREIT cautions you not to place undue reliance upon any such forward‐looking statements, which speak only as of the date they are made. Forward‐looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and HREIT does not undertake any obligation to update forward‐looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except as required by applicable law.

The Toronto Stock Exchange has not reviewed nor approved the contents of this press release and does not accept responsibility for the adequacy or accuracy of this press release.