Partners REIT Acquiring Five Properties in Ontario and One in Alberta

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Partners Real Estate Investment Trust (TSX VENTURE:PAR.UN) ("Partners REIT")
announced today that it will be acquiring five properties in Ontario from
unrelated vendors and one in Alberta aggregating approximately 428,000 square
feet, which are being funded by debt, the assumption of existing mortgages and
the proceeds from the previously announced NorRock Realty Finance Corporation
transaction. The aggregate value of these properties is approximately $108
million, representing an aggregate cap rate of 7.2%. These properties currently
generates Net Operating Income in the aggregate of of approximately $7.7 million
on an annualized basis and management expects it will generate approximately
$5.6 in incremental annualized Funds From Operations. Each of these acquisitions
are expected to close in February 2012 subject to the fulfillment of certain
conditions precedent. The closing of the acquisitions are not conditional upon
the closing of the NorRock Realty Finance Corporation transaction.


The details of the individual acquisitions are as follows:

Crossing Bridge Square 

Crossing Bridge Square is an existing 45,800 square foot open-air centre located
in Stittsville, Ontario, a suburb located 31 kilometres from downtown Ottawa.
The centre consists of a retail strip centre and two free-standing pad sites.
Nearly 45% of the centre is occupied by Farm Boy grocery store and IDA Drug Mart
with other tenancies including Local Heroes, Pet Valu and McDonalds and the
centre is almost 91% occupied with one vacancy. The property currently generates
net operating income of a little over $750,000 on an annualized basis and
management expects it will generate over $500,000 in incremental annualized
funds from operations. 


Partners REIT will pay approximately $11.2 million for the property, subject to
closing adjustments. The acquisition will be satisfied by new one-year bank
credit facility of $5.6 million with an interest rate equivalent to Bankers
Acceptance plus 2.5% or currently 3.6% and the balance with Partners REIT's
available funds on hand. 


Grand Bend Towne Centre 

Grand Bend Towne Centre is an existing 36,100 square foot centre comprised of a
Sobeys grocery store with a lease extending to April 2023 and a Shoppers Drug
Mart with a lease extending to September 2017 located on Main Street East in
downtown Grand Bend, Ontario. Grand Bend Towne Centre will also include a 6,100
square foot LCBO scheduled for construction completion in May 2013 with a lease
extending until May 2028. The vendor is responsible for the completion and cost
of the building, as well as a rental guarantee. The property currently generates
net operating income of approximately $650,000 on an annualized basis and
management expects it will generate approximately $450,000 in incremental
annualized funds from operations. 


Partners REIT will pay approximately $9.5 million for the property, subject to
closing adjustments and prior to an effective $200,000 adjustment for the above
market interest rate on the assumed mortgage, for a net acquisition price of
$9.3 million. The acquisition will be satisfied by the assumption of an existing
mortgage of approximately $3.3 million, originally maturing July 2017, with a
stated interest rate of 5.44%, but with an effective interest rate of 3.85%
taking into consideration the $200,000 purchase price adjustment. This mortgage
will be increased by approximately $1.6 million at an interest rate of 3.6% and
maturing with the original mortgage. The balance of the acquisition will be
satisfied by Partners REIT's available funds on hand. 


King George Square 

King George Square is an existing 67,100 square foot open-air centre comprised
of three buildings and located on the west side of King George Road which
traverses Brantford, Ontario's traditional retail node. King George Road is the
usual north-south route from the 403 to the north part of Brantford and is used
by 33,000 cars a day. Nearly 50% of the centre is occupied by Shoppers Drug Mart
and Dollarama with other tenancies including Bulk Barn, Pet Valu and Casey's
Restaurant and the centre is almost 98% economically occupied with 7% of the
space covered by a rental guarantee from the vendor along with a related tenant
allowance for lease up of the space. The property currently generates net
operating income of approximately $1.2 million on an annualized basis and
management expects it will generate approximately $900,000 in incremental
annualized funds from operations. 


Partners REIT will effectively pay approximately $16.8 million for the property,
subject to closing adjustments and prior to a capital improvement adjustment of
$125,000, for a net acquisition price of $16.7 million. The acquisition will be
satisfied by new one-year bank credit facility of $8.4 million with an interest
rate equivalent to Bankers Acceptance plus 2.5% or currently 3.6 and the balance
with Partners REIT's available funds on hand.


Manning Crossing 

Manning Crossing is an existing 64,500 square foot centre comprised of a retail
strip, five restaurant pads and shadowed anchored by a corporately-owned Safeway
grocery store located in Edmonton, Alberta. The centre is located at the
intersection of 137th Avenue Northwest, the primary east-west artery, and
Manning Drive, the primary north-south entrance into the city of Edmonton, with
average daily traffic counts of 53,000 cars. The centre is over 95% occupied
with key tenants such as Liquor Depot, Royal Bank of Canada, Smitty's, Tim
Hortons and A&W. There is also a rental guarantee by the vendor on 4.5% of the
space along with a tenant allowance to lease up the space. The property
currently generates net operating income of approximately $1.45 million on an
annualized basis and management expects it will generate approximately $1.0
million in incremental annualized funds from operations. 


Partners REIT will pay approximately $21.3 million for the property, subject to
closing adjustments and prior to an effective $300,000 adjustment for the above
market interest rate on the assumed mortgage, for a net acquisition price of
$21.0 million. The acquisition will be satisfied by the assumption of an
existing mortgage of approximately $4.6 million maturing August 2014, with a
stated interest rate of 6.59%, but with an effective interest rate of 3.5%
taking into consideration the $300,000 purchase price adjustment. This mortgage
will be increased by approximately $8.0 million at an interest rate of 3.6% and
maturing with the original mortgage. The balance of the purchase price will be
paid from Partners REIT's available funds on hand.


St. Clair Beach Towne Centre 

St. Clair Beach Towne Centre, an existing 40,100 square foot centre comprised of
two buildings located in the Windsor, Ontario suburb of Tecumseh. Tecumseh is a
mature residential neighborhood. St. Clair Beach Towne Centre is anchored by
Shoppers Drug Mart occupying 50% of the centre with a lease that runs through
July 2025. Swiss Chalet occupies almost 15% of the centre and the centre is 95%
economically occupied with 5% of the space covered by a rental guarantee from
the vendor.  


The property currently generates net operating income of approximately $900,000
on an annualized basis and management expects it will generate approximately
$700,000 in incremental annualized funds from operations. 


Partners REIT will pay approximately $12.1 million for the property, subject to
closing adjustments and prior to an effective $300,000 adjustment for the above
market interest rate on the assumed mortgage, for a net acquisition price of
$11.8. The acquisition will be satisfied by the assumption of an existing
mortgage of approximately $4.4 million, originally maturing November 2014, with
a stated interest rate of 6.1%, but with an effective interest rate of 3.5%
taking into consideration the $300,000 purchase price adjustment. This mortgage
will be increased by approximately $1.8 million at an interest rate of 3.6% and
the maturity of the original mortgage will be extended until July 2017 at the
same interest rate beyond the original maturity. The balance of the purchase
price will be paid from Partners REIT's available funds on hand.


Thunder Centre 

Thunder Centre is an existing 168,000 square foot power centre comprised of two
big-box stores and five multi-tenant retail strips located in the primary retail
node of Thunder Bay, Ontario. Thunder Centre is shadow-anchored by a Canadian
Tire and Home Depot and is adjacent to Intercity Shopping Centre which will have
newly converted Target store. Over 60% of the centre is occupied by Home
Outfitters, Michaels, Old Navy, Mark's Work Wearhouse, Dollarama and LCBO and
the centre is 100% economically occupied with 2.5% of the space covered by a
rental guarantee from the vendor.  


The property currently generates net operating income of approximately $2.75
million on an annualized basis and management expects it will generate
approximately $2.05 million in incremental annualized funds from operations. 


Partners REIT will pay approximately $39.3 million for the property, subject to
closing adjustments and prior to an effective $1.1 million adjustment for the
above market interest rate on the assumed mortgage, for a net acquisition price
of $38.2. The acquisition will be satisfied by the assumption of an existing
mortgage of approximately $14.8 million, originally maturing October 2015, with
a stated interest rate of 5.74%, but with an effective interest rate of 3.5%
taking into consideration the $1.1 million purchase price adjustment. This
mortgage will be increased by approximately $4.9 million at an interest rate of
3.6% and the maturity of the original mortgage will be extended until July 2017
at the same interest rate beyond the original maturity. The balance of the
purchase price will be paid from Partners REIT's available funds on hand.


"We continue to be very active growing our portfolio since we took over
management of the REIT in June 2010 with the acquisition of retail centres in
Quebec, Ontario, Manitoba, Alberta and British Columbia and now these additional
five centres in Ontario and one in Alberta," commented Adam Gant, Chief
Executive Officer. 


About Partners REIT 

Partners REIT is a growth-oriented real estate investment trust, which currently
owns (directly or indirectly) 21 retail properties located in British Columbia,
Ontario, Manitoba and Quebec, aggregating approximately 1.7 million square feet
of leaseable space. Partners REIT focuses on expanding and managing a portfolio
of retail and mixed-use community and neighbourhood shopping centres located in
both primary and secondary markets across Canada. After taking into account the
acquisitions above, Partners REIT will own 27 properties aggregating
approximately 2.1 million square feet of leasable space. 


Non-IFRS Measures 

This press release makes reference to certain financial measures other than
those prescribed by International Financial Reporting Standards ("IFRS"). These
non-IFRS measures are not recognized under IFRS, do not have a standardized
meaning prescribed by IFRS and are therefore unlikely to be comparable to
similar measures presented by other entities. These non-IFRS measures, which
include NOI and FFO, are provided to the reader as additional information to
complement IFRS measures and to further understand the REIT's results of
operations from management's perspective and as a supplemental measure of
performance that highlights trends in the business that may not otherwise be
apparent when relying solely on IFRS financial measures. Such non-IFRS measures
should not be considered in isolation or as a substitute for analysis of
financial information reported under IFRS. Readers should refer to the REIT's
annual information form and MD&A, which are available on our website and on
SEDAR at www.sedar.com, for additional details regarding the determination of
these non-IFRS measures and reconciliation to financial information reported
under IFRS. 


Forward-looking Statements 

Certain statements included in this press release constitute forward-looking
statements, including, but not limited to, those identified by the expressions
"expect," "will" and similar expressions to the extent they relate to Partners
REIT. The forward-looking statements are not historical facts but reflect
Partners REIT's current expectations regarding future results or events. These
forward looking statements are subject to a number of risks and uncertainties
that could cause actual results or events to differ materially from current
expectations, including the integration of the acquisitions with our property
portfolio, the receipt of regulatory approval, our expectations regarding
closing the proposed acquisitions, the expected increase in the mortgage, our
expectations regarding an increase in incremental funds as a result of the
acquisitions, our intention to continue to grow and diversify our portfolio,
access to capital, regulatory approvals, intended acquisitions and general
economic and industry conditions. Although Partners REIT believes that the
assumptions inherent in the forward-looking statements are reasonable,
forward-looking statements are not guarantees of future performance and,
accordingly, readers are cautioned not to place undue reliance on such
statements due to the inherent uncertainty therein.