Partners Real Estate Investment Trust Announces Closing of Previously Announced Quinte Crossroads Acquisition

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Partners Real Estate Investment Trust ("Partners REIT") announced today the
closing of its previously announced acquisition of Quinte Crossroads, a new
development consisting of 88,319 square feet of recently constructed 4 building
power centre on 14.26 acres, in Belleville, ON. This new format center is
directly adjoining the Quinte Mall to the east and shadow anchored by The Home
Depot, providing high volumes of retail traffic and tenant demand offering both
current income characteristics and a near term value add opportunity. In
addition, this opportunity offers approximately 48,000 square feet of
preapproved development in the heart of the 14.26-acre site providing potential
upside in the near term. The property is currently 100% occupied and generates
Net Operating Income in the aggregate of approximately $1.4 million on an
annualized bases and management expects it will generate approximately $850,000
in incremental annualized Funds From Operations. 


Partners REIT has paid approximately $21.25 million for the property with $14.2
million funded through a new ten-year mortgage that bears interest at 4%, and
the balance paid in cash. 


"This acquisition is consistent with Partners REIT's strategy to strengthen,
expand and further diversify its portfolio by acquiring well-positioned
community and neighbourhood properties in growth markets with consistent strong
cash flows derived from tenants that provide necessity-based products and
services," 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) 28 retail properties located in British Columbia,
Alberta, Ontario, Manitoba and Quebec, aggregating approximately 2.1 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 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.