Huntingdon REIT announces $30 million public offering of convertible debentures

Fri Feb 16, 5:18 PM

WINNIPEG, Feb. 16 /CNW/ - Huntingdon Real Estate Investment Trust ("HREIT") (TSX: HNT-UN.TO) announced today that it has entered into an engagement letter with Blackmont Capital Inc. relating to the offering (the "Offering") to the public by way of short form prospectus of 5 Year 7.50% Series C Convertible Redeemable Unsecured Subordinated Debentures (the "Debentures"), in the maximum aggregate principal amount of $30,000,000. The Offering will be made on a best efforts basis by a syndicate of investment dealers led by Blackmont Capital Inc. (collectively, the "Agents"). HREIT has agreed to grant to the Agents an option to acquire additional Debentures equal to 15% of the number of Debentures sold pursuant to the Offering.

HREIT intends to use the net proceeds of the Offering to fund future acquisitions of income producing properties, working capital and general purposes.

Closing of the Offering is expected to occur on or about March 27, 2007.

HREIT is a real estate investment trust, which is listed on the Toronto Stock Exchange under the symbol HNT.UN. The objective of HREIT is to provide Unitholders with stable and growing cash distributions from investments in a geographically diversified Canadian portfolio of quality commercial and industrial real estate properties. There are currently 71,858,185 trust units outstanding. For further information on HREIT, please visit our website at www.hreit.ca.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The TSX 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.

Contacts

Arni Thorsteinson
Chief Executive Officer

or Gino Romagnoli
Investor Relations
Tel: (204) 475-9090
Fax: (204) 452-5505
Email: info@hreit.com