Melcor REIT Announces Closing of $13.5 Million of Property Acquisitions

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Melcor Real Estate Investment Trust (TSX:MR.UN) (the "REIT") announced today the
closing of the purchase of two multi-tenant retail properties from Melcor
Developments Ltd. ("Melcor"). The two properties, Kingsview Market Phase Three
located in Airdrie, Alberta and Market Mall located in Regina, Saskatchewan,
represent approximately 54,126 square feet of gross leasable area, and will be
managed by Melcor, the REIT's external asset manager and property manager.


Approximately $7.40 million of the $ 13.5 million purchase price was satisfied
by the issuance to Melcor of 694,836 Class B LP Units of Melcor REIT Limited
Partnership, a subsidiary of the REIT, each with an issue price of $10.65.
Melcor currently holds an approximate 48.1% effective interest in the REIT
through the ownership of: (i) 10,225,634 Special Voting Units of the REIT; and
(ii) 10,225,634 Class B LP Units of the Partnership, each of which is
economically equivalent to, and exchangeable for, one trust unit of the REIT.


Darin Rayburn, Chief Executive Officer of the REIT commented on the transaction:
"We are pleased to complete this transaction - our first purchase via Melcor's
pipeline. These properties represent both aspects of the Melcor opportunity
pipeline - new construction that fits our criteria for vend in to the REIT, and
a redeveloped property. 


"We've grown our portfolio GLA by 15% through 5 acquisitions since our initial
public offering. At the same time, we have made good progress towards our
portfolio diversification goals with substantial growth in both the industrial
and retail asset classes GLA. These properties meet our acquisition criteria:
markets we know well and have a presence in, complementary to our existing
portfolio, quality construction and immediately accretive on a leverage neutral
basis."


About Melcor REIT

Melcor REIT is an unincorporated, open-ended real estate investment trust.
Melcor REIT owns, acquires, manages and leases quality retail, office and
industrial income-generating properties with exposure to high growth Canadian
markets. Its portfolio is currently made up of interests in 31 properties
representing approximately 1.81 million square feet of gross leasable area
located across Alberta and in Regina, Saskatchewan and Kelowna, British
Columbia. For more information, please visit www.melcorREIT.ca.


Forward-Looking Statements

This press release may contain forward-looking information within the meaning of
applicable securities legislation, which reflects the REIT's current
expectations regarding future events. Forward-looking information is based on a
number of assumptions and is subject to a number of risks and uncertainties,
many of which are beyond the REIT's control, that could cause actual results and
events to differ materially from those that are disclosed in or implied by such
forward-looking information. Such risks and uncertainties include, but are not
limited to, general and local economic and business conditions; the financial
condition of tenants; the REIT's ability to refinance maturing debt; leasing
risks, including those associated with the ability to lease vacant space; and
interest rate fluctuations. The REIT's objectives and forward-looking statements
are based on certain assumptions, including that the general economy remains
stable, interest rates remain stable, conditions within the real estate market
remain consistent, competition for acquisitions remains consistent with the
current climate and that the capital markets continue to provide ready access to
equity and/or debt. All forward-looking information in this press release speaks
as of the date of this press release. The REIT does not undertake to update any
such forward-looking information whether as a result of new information, future
events or otherwise.


Additional information about these assumptions and risks and uncertainties is
contained in the REIT's filings with securities regulators.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Melcor Real Estate Investment Trust
Business Contact
Darin Rayburn
Chief Executive Officer
780.423.6931
[e-mail]


Melcor Real Estate Investment Trust
Investor Relations
Jonathan Chia, CA
Chief Financial Officer
780.423.6931
[e-mail]