Huntingdon Reit announces sale of two properties and provides update on process to sell REIT

WINNIPEG, Sept. 29 /CNW/ - Huntingdon Real Estate Investment Trust ("HREIT" or the "REIT) (TSX: HNT-UN.TO) announced today the sale of two properties, 80-88 Fennell Street in Winnipeg, Manitoba and 4080-77th Street N.W. in Red Deer, Alberta for total net sale proceeds of $11.3 Million. The Winnipeg sale will close November 1, 2008 and the Red Deer sale closed September 1, 2008. The total gain on the two property sales totals approximately $1.5 Million. After repayment of first mortgage debt on the two properties, net cash proceeds totals $4.8 Million.

On July 7, 2008, after reviewing all of the alternatives available to HREIT to enhance unitholder value, the Board of Trustees approved a process to solicit proposals to acquire or merge with HREIT. This decision was a result of the strategic review process announced to enhance unitholder value, which commenced in March 2008. The sale process remains ongoing and a number of interested parties are currently conducting additional due diligence and property tours with the assistance of HREIT and RBC Capital Markets, the REIT's financial advisor. A further update on the sale process will be provided as more information becomes available. Unitholders are cautioned that there can be no assurance that a sale or merger transaction or another material development will result from the strategic review process.

    
    About HREIT
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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 (Convertible Debentures). HREIT owns 79 income producing office, industrial, retail and standalone parking lot properties that have a total gross leaseable owned area of 5.4 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 a third party property management business. There are currently 72,502,104 trust units outstanding. For further information on HREIT, please visit our website at www.hreit.ca.

    
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Contacts

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