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Press release from Marketwire

Calloway Real Estate Investment Trust Closes $90 Million Series G Senior Unsecured Debenture Issue

Monday, August 22, 2011

Calloway Real Estate Investment Trust Closes $90 Million Series G Senior Unsecured Debenture Issue08:54 EDT Monday, August 22, 2011TORONTO, ONTARIO--(Marketwire - Aug. 22, 2011) -NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICESCalloway Real Estate Investment Trust ("Calloway" or the "REIT") (TSX:CWT.UN) announced that it has closed its previously announced $90 million principal amount issue of Series G senior unsecured debentures. These debentures carry a coupon rate of 4.70% and mature on August 22, 2018. The issue was offered by a syndicate of dealers co-led by CIBC and RBC Capital Markets. Calloway intends to use the net proceeds from the issuance of these debentures to repay drawn operating lines used to complete the previously announced acquisition of two Walmart-anchored Supercentres in Hamilton and Sudbury, Ontario. A third Walmart-anchored Supercentre located in Guelph, Ontario is under conditional contract and is expected to close later this month.Dominion Bond Rating Service has provided Calloway with a credit rating of BBB with a stable trend related to the debentures. The offering was made by way of a Prospectus Supplement to Calloway's existing $2 billion base shelf short form prospectus filed with Canadian securities regulatory authorities. The terms of the offering are described in a prospectus supplement dated August 17, 2011, which was filed with Canadian securities regulators.About CallowayCalloway is one of Canada's largest real estate investment trusts with an enterprise value of $5.6 billion as at June 30, 2011. It owns and manages 24 million square feet in 113 value-oriented retail centres having the strongest national and regional retailers, as well as strong neighbourhood merchants. Walmart will continue to be the dominant anchor tenant in the portfolio, and we expect their presence will continue to attract other retailers and consumers. Calloway's vision is to provide a value-oriented shopping experience to Canadian consumers.This press release contains "forward looking statements" subject to various significant risks and uncertainties which may cause actual results, performances or achievements of Calloway to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such risk factors include, but are not limited to, risks associated with real property ownership, availability of cash flow, restrictions on redemption, general uninsured losses, future property acquisitions, environmental matters, tax related matters, debt financing, Unitholder liability, potential conflicts of interest, potential dilution, and reliance on key personnel. Calloway cannot assure investors that actual results will be consistent with these forward looking statements and Calloway assumes no obligation to update or revise them to reflect new events or circumstances.FOR FURTHER INFORMATION PLEASE CONTACT: Al MawaniCalloway Real Estate Investment TrustPresident and Chief Executive Officer(905) 326-6400 ext. 7649(905) 326-0783 (FAX)ORBart MunnCalloway Real Estate Investment TrustChief Financial Officer(905) 326-6400 ext. 7631(905) 326-0783 (FAX)