Partners REIT Announces Exercise of Over-Allotment Option

VICTORIA, March 14 /CNW/ -- 
NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES


VICTORIA, March 14 /CNW/ - Partners Real Estate Investment Trust (the "REIT" or "Partners REIT") (TSXV: PAR.UN) is pleased to announce that the underwriters of its
 previously announced offering (the "Offering") of $25,000,000 aggregate principal amount of 8.0% extendible
 convertible unsecured subordinated debentures have delivered a notice
 of intention to exercise in full their over-allotment option which will
 result in the issuance of an additional $3,750,000 aggregate principal
 amount of debentures, for a total issuance of $28,750,000 aggregate
 principal amount of debentures (the "Debentures").


The closing of the over-allotment option is expected to take place on or
 about March 15, 2011 and is subject to certain conditions precedent.


Part of the net proceeds of the Offering were used to repay an
 $8,600,000 secured loan, and the balance will be used to purchase six
 properties (the "Acquisition") and for future acquisitions and general trust working capital
 purposes.


The Debentures have an initial maturity date of April 30, 2011 which
 will automatically be extended to March 31, 2016 upon the closing of
 the Acquisition. The Debentures bear interest at a rate of 8.0% per
 annum, payable semi-annually, and are convertible at the option of the
 holder into Units of the REIT at an initial conversion price of $2.20
 per Unit, being a ratio of 454.5455 Units per $1,000 principal amount
 of Debentures.


The Offering was co-led by TD Securities Inc. and CIBC, and including
 Dundee Securities Ltd., Macquarie Capital Markets Canada Ltd., Scotia
 Capital Inc., National Bank Financial Inc., Canaccord Genuity Corp.,
 Raymond James Ltd. and Brookfield Financial Corp.


About Partners REIT


Partners REIT is a growth-oriented real estate investment trust,
 currently comprised of ten retail properties well located in Ontario
 and Quebec aggregating approximately 1.1 million square feet of
 leaseable space.  It 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.


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 closing of the over-allotment option, the
 listing of the additional Debentures, the use of proceeds of the
 offering, 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.


This news release shall not constitute an offer to sell or the
 solicitation of an offer to buy any securities, nor shall there be any
 sale of securities in any jurisdiction in which such offer,
 solicitation or sale would be unlawful prior to registration or
 qualification under the securities laws of such jurisdiction. The
 securities offered have not been and will not be registered under the
 United States Securities Act of 1933, as amended (the "1933 Act"), and
 may not be offered or sold within the United States or to, or for the
 account or benefit of, U.S. persons, except in certain transactions
 exempt from the registration requirements of the 1933 Act.


Neither the TSX Venture Exchange nor its Regulation Services Provider
 (as that term is defined in policies of the TSX Venture Exchange)
 accepts responsibility for the adequacy or accuracy of this release.


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pPatrick Miniutti, President and Chief Operating Officer [phone]/p

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