InnVest Real Estate Investment Trust Announces Closing of $75 Million Public Offering of Convertible Debentures


TORONTO, ONTARIO–(Marketwire – Aug. 13, 2010) –

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

InnVest Real Estate Investment Trust (TSX:INN.UN) announced today that it has closed its previously announced public offering of $75 million aggregate principal amount of 6.00% convertible unsecured subordinated debentures due September 30, 2017 (the “Debentures”). The Debentures are convertible, at the option of the holder, into trust units of InnVest at a conversion price of $8.00 per trust unit. The offering was completed through a syndicate of underwriters led by Scotia Capital Inc. The Debentures will be listed on the Toronto Stock Exchange under the symbol “INN.DB.E”.

InnVest intends to use the net proceeds of the offering, estimated to be $71.7 million after deducting expenses related to the offering, to redeem the outstanding Series A 6.25% Convertible Debentures, to repay other indebtedness and for general trust purposes.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the United States absent registration or pursuant to applicable exemption from registration.

FORWARD LOOKING STATEMENTS

Statements contained in this press release that are not historical facts are forward-looking statements which involve risk and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are real estate investment risks, hotel industry risks and competition. These and other factors are discussed in InnVest’s 2009 annual information form which is available at www.sedar.com or www.innvestreit.com. InnVest disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by applicable securities law.

TRUST PROFILE

InnVest REIT holds Canada’s largest hotel portfolio together with an interest in Choice Hotels Canada Inc. the largest franchisor of hotels in Canada. The hotel portfolio currently comprises 145 hotel properties, with approximately 19,000 guest rooms, operated under internationally recognized franchise brands such as Comfort Inn®, Holiday Inn®, Quality Suites/Inn®, Radisson®, Delta®, Travelodge®, Hilton® Staybridge Suites®, Fairmont Hotels®, Sheraton Suites® and Best Western®. InnVest’s trust units and outstanding convertible debentures trade on the Toronto Stock Exchange under the symbols INN.UN, INN.DB.A, INN.DB.B, INN.DB.C and INN.DB.D, respectively.


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