Partners Real Estate Investment Trust Obtains Additional Debt Financing

NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES


Partners Real Estate Investment Trust ("Partners REIT") (TSX VENTURE:PAR.UN)
announces that Charter Acquisition Corp. ("Charter Acquisition"), a subsidiary
of Partners REIT, has borrowed $25.5 million from Alterna Savings and Credit
Union Limited ("Alterna") under a loan agreement entered into by Charter
Acquisition, Alterna and Partners REIT. The loan is secured against the Cornwall
Square shopping centre located in Cornwall Ontario which is registered in the
name of Charter Acquisition which is beneficially held by Partners REIT. The new
loan has been used to repay two existing loans secured against the Cornwall
Square property and has a term of five years, bearing interest at the rate of
4.9% annually. Partners REIT has guaranteed the obligations of Charter
Acquisition to repay the principal, interest and other amounts owing to the
lender. After the repayment of the existing loans and interest thereon which
amount to $17.4 million, the balance of the proceeds of this loan will be used
for general trust purposes or to fund or partially fund acquisitions.


About Partners REIT 

Partners REIT is a growth-oriented real estate investment trust, which currently
owns (directly or indirectly) ten retail properties, located in Ontario and
Quebec, aggregating approximately 1.1 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 use of the balance of the proceeds of the loan,
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.