Primaris Retail REIT Announces Public Offering of $75 Million of Convertible Unsecured Debentures

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

Primaris Retail REIT (TSX:PMZ.UN) announced today that it has reached an
agreement with a syndicate of underwriters co-led by RBC Capital Markets and
CIBC World Markets Inc., with RBC Capital Markets acting as bookrunner, to issue
to the public, subject to regulatory approval, on a bought deal basis, $75
million aggregate principal amount of 6.30% convertible unsecured subordinated
debentures due September 30, 2015 (the "Debentures"). The Debentures are
convertible, at the option of the holder, into trust units of Primaris Retail
REIT at $16.70 per trust unit. Primaris Retail REIT has granted an
over-allotment option exercisable at any time up to 30 days after Closing, to
acquire additional Debentures up to the lesser of $11.25 million aggregate
principal amount of Debentures and the Underwriters respective "Over-Allocation
Position" as at the closing date.


The net proceeds from this offering (after deducting the Underwriters' fee and
estimated offering expenses) will be used to fund future property acquisitions,
the redevelopment of the REIT's existing properties and for general trust
purposes.


Primaris Retail REIT will, by September 18, 2009, file with the securities
commissions and other similar regulatory authorities in each of the provinces
and territories of Canada a preliminary short form prospectus relating to the
issuance of the Debentures. Closing of the offering is expected to take place on
or about October 6, 2009.


This press release shall not constitute an offer to sell, or the solicitation of
an offer to buy, any securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities being offered have not
been and will not be registered under the U.S. Securities Act of 1933 as amended
and may not be offered or sold in the United States absent registration or
pursuant to applicable exemption from registration.


Forward-Looking Information

The press release contains forward-looking information based on management's
best estimates and the current operating environment. These forward-looking
statements are related to, but not limited to, the REIT's operations,
anticipated financial performance, business prospects and strategies.
Forward-looking information typically contains statements with words such as
"anticipate", "believe", "expect", "plan", or similar words suggesting future
outcomes. Such forward-looking statements are subject to risks, uncertainties
and other factors which could cause actual results to differ materially from
future results expressed, projected or implied by such forward-looking
statements.


Although the forward-looking statements contained in this press release are
based on what management of the REIT believes are reasonable assumptions,
forward-looking statements involve significant risks and uncertainties. They
should not be read as guarantees of future performance or results and will not
necessarily be an accurate indicator of whether or not such results will be
achieved. Readers are cautioned not to place undue reliance on forward-looking
statements as a number of factors could cause actual future results to differ
from targets, expectations or estimates expressed in the forward-looking
statements. Factors that could cause actual results to differ materially
include, but are not limited to, economic, competitive and commercial real
estate conditions, unplanned compliance-related expenses, uninsured property
losses and tenant-related risks.


Primaris Retail REIT owns 26 income-producing properties comprising
approximately 9.3 million square feet located in Canada. As of August 31, 2009,
the REIT had 62,453,740 units issued and outstanding.