TORONTO, ONTARIO--(Marketwire - Oct. 21, 2011) - Canadian Real Estate Investment Trust (CREIT) (TSX:REF.UN) announced it has acquired a portfolio of industrial properties located in Mississauga, Ontario (the Portfolio or Properties).

The Portfolio is comprised of seventeen (17) stand-alone, single-tenant buildings and two (2) multi-tenant buildings, for a total of nineteen (19) properties that are primarily used for general warehousing and light manufacturing. The aggregate leaseable area is 706,000 square feet on 36.3 acres of land.

The Properties are located just west of Pearson International Airport in a strong and well-established industrial node. CREIT currently owns approximately one million square feet of industrial space in close proximity to the Properties, making this a logical addition to CREIT's existing portfolio.

The Properties represent part of a portfolio of twenty three (23) properties that was being offered for sale as a single purchase transaction. However, four (4) properties in the 23-property portfolio were not a strategic fit for CREIT. Accordingly, CREIT entered into an agreement to acquire the entire portfolio for a purchase price of $76.0 million and then negotiated an assignment with a third party to purchase the four (4) non-strategic properties for a price of $18.5 million.

The net purchase price for the Properties acquired by CREIT was $57.5 million. CREIT did not assume any debt on this acquisition. The purchase price was settled with cash on hand and CREIT's bank credit facility.

Adam Paul, Vice President, Investments, of CREIT, said "This is a natural addition to CREIT's industrial portfolio in the Greater Toronto Area. These Properties are well located within the strong Mississauga industrial market. The current occupancy in the Portfolio is 99.6% and the acquisition cost is well below the current replacement cost. This Portfolio should deliver a reliable and growing rental income stream over a long-term investment horizon."

CREIT is a real estate investment trust focused on accumulating a portfolio of high-quality real estate assets and delivering the benefits of real estate ownership to Unitholders. The primary benefit is a reliable and, over time, increasing cash distribution.

Cautionary Statements Regarding Forward-looking Statements

This news release contains forward-looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. We undertake no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except as required by law.

Contributing Sources

---

Market Wire