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Attention Business Editors
Huntingdon REIT announces sale of two retail properties
WINNIPEG, July 3 /CNW/ - Huntingdon Real Estate Investment Trust
("HREIT") (TSX: HNT.UN) announced that it has completed the previously
announced sale of a retail property in Fort Saskatchewan, Alberta, known as
Southfort Square. The property was sold for $1,725,000 and resulted in a gain
on sale of approximately $228,000 and net cash to HREIT of approximately
$557,000, after expenses and closing adjustments, and the repayment of
approximately $1.03 million of first mortgage debt. HREIT utilized the
majority of the net cash from the sale to repay other higher cost interim
mortgage debt.
HREIT also announced that it has entered into an unconditional agreement
to sell a retail centre in Peterborough, Ontario, known as Willowcreek Centre
for $7.25 million. The sale is expected to result in net cash to HREIT of
approximately $2.6 million, after expenses and closing adjustments, and the
repayment of approximately $4.4 million of first mortgage debt. The sale is
scheduled to close on September 1, 2009. HREIT will use the net cash proceeds
from the sale to improve working capital. HREIT expects to record a gain on
the transaction of approximately $500,000.
Pursuant to HREIT's previously announced plans to divest assets and
reduce debt, additional property sales are under conditional contract or sale
listings and are expected to close during the second half of 2009.
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 71 income producing office, industrial,
retail and standalone parking lot properties that have a total gross leaseable
owned area of 4.8 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 CRESI
Inc., a third party property management business. For further information on
HREIT, please visit our website at www.hreit.ca.
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The Toronto Stock Exchange 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.
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/For further information: Arni Thorsteinson, President & Chief Executive
Officer, or Gino Romagnoli, Investor Relations, Tel: (204) 475-9090, Fax:
(204) 452-5505, Email: info@hreit.ca/
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