Temple REIT Closes Public Offering of Trust Units and Convertible Debentures

WINNIPEG, Feb. 15 /CNW/ - Temple Real Estate Investment Trust ("Temple REIT") (TSX-V: TR.UN) announced today that it has closed the maximum amount under its previously announced public offering (the "Offering ") of trust units ("Units") and 5 Year 7.50% Series A Convertible Redeemable Debentures ("Debentures"). Pursuant to the Offering, Temple REIT sold 5,800,000 Units at a price of $5.00 per Unit and Debentures in the aggregate principal amount of $14,000,000, being the maximum number of Units and Debentures offered under the Offering, for aggregate gross proceeds of $43,000,000. The Offering was made on a best effo rts basis by a syndicate of agents led by Blackmont Capital Inc., and including Wellington West Capital Inc., Dundee Securities Corporation, Raymond James Ltd., HSBC Securities (Canada) Inc. and Westwind Partners Inc. (collectively, the "Agents"). Temple REIT has granted to the Agents an over-allotment option to purchase up to an additional 696,000 Units and additional Debentures up to a maximum aggregate principal amount of $1,680,000. The option is exercisable in whole or in part at any time within 30 days of the closing of the Offering.

Temple REIT intends to use the net proceeds of the Offering to fund the acquisition of additional hotel properties and assets and for general purposes, as more particularly disclosed in its final prospectus dated December 28, 2006.

Temple REIT is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbol TR.UN. The objective of Temple REIT is to provide Unitholders with stable cash distributions from investment in a geographically diversified portfolio of hotel properties, primarily in Canada. After giving effect to the Offering, there are currently 8,145,837 trust units outstanding. For further information on Temple REIT, please visit our website at www.treit.ca.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

This press release contains forward-looking statements. Temple REIT is subject to significant risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. Such risk factors include, but are not limited to, risks associated with real property ownership, the impact of general economic conditions, industry conditions, interest rate fluctuations, tax-related risk factors, governmental regulation, environmental risks, competition from other industry participants, stock market volatility, the ability to access sufficient capital from internal and external sources and the risk of fluctuation and variation in actual operating results, which variation may be material. Temple REIT cannot assure investors that actual results will be consistent with any forward-looking statement and does not assume any obligation to update or revise such forward-looking statements to reflect actual events or new circumstances, except as expressly required by applicable securities laws.

Contacts

Arni Thorsteinson
Chief Executive Officer or Gino Romagnoli
Chief Financial Officer
Tel: (204) 475-9090
Fax: (204) 452-5505
Email: info@treit.ca