Partners REIT Extends Geographic Presence with Acquisition in British Columbia

   Partners Real Estate Investment Trust (Partners REIT) (TSX VENTURE: PAR.UN) announced today that it would be acquiring the majority of the retail units of the Centuria Urban Village, a food and drug store anchored high-rise mixed use retail and residential property located in Kelowna, British Columbia. The development of the property was completed in 2009.

The retail space being purchased totals approximately 32,500 square feet and includes designated underground parking space as limited common property. The properties being acquired are 100% occupied under long-term leases with Nesters Food Market (Buy-Low Foods LP), Paragon Pharmacies Ltd., the British Columbia Nurses Union, and a salon and spa. The purchase price will be approximately $8.9 million, subject to final adjustments, and will be satisfied with cash from the proceeds of the recently completed Convertible Unsecured Subordinated Debenture Offering and the REIT's line of credit. The properties on an annualized basis currently generate Net Operating Income of approximately $650,000 and will generate approximately $550,000 in incremental Funds From Operations. The transaction is expected to close on or before May 16, 2011.

"One of our stated goals is to expand and further diversify our portfolio in high-growth markets across Canada," commented Adam Gant, Chief Executive Officer. "The accretive acquisition of this brand-new, modern and attractive retail space in Kelowna is our first purchase in British Columbia, and we look to aggressively build on this presence going forward."

About Partners REIT

Partners REIT is a growth-oriented real estate investment trust, which currently owns (directly or indirectly) seventeen retail properties located in Ontario, Manitoba and Quebec, aggregating approximately 1.3 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.

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 Acquisition with our property portfolio, our expectations regarding an increase in incremental funds as a result of the Acquisition, 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.

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.

Contacts: Partners Real Estate Investment Trust Patrick Miniutti President and Chief Operating Officer [phone]