InnVest REIT Completes Offering

InnVest Real Estate Investment Trust successfully completed on May 16, 2006 an offering of $75 million 6 per cent convertible unsecured subordinated series B debentures on a bought-deal basis. The REIT will use the net proceeds of the offering to finance the previously completed acquisition of two Delta-branded hotels in Quebec, to repay all indebtedness under the REIT's revolving credit facility, including indebtedness incurred from the acquisition of two Hilton-branded hotels and a Comfort Inn located in Ontario, to fund future acquisitions and for general purposes.

The offering was underwritten by a syndicate led by RBC Dominion Securities Inc., together with Scotia Capital Inc., CIBC World Markets Inc., BMO Nesbitt Burns Inc. and TD Securities Inc.

The REIT was represented by Davies Ward Phillips & Vineberg LLP with a team that included Mitchell Finkelstein, Lori Sullivan and Robin Upshall (corporate/securities) and Neal Armstrong and Raj Juneja (tax).

The underwriters were represented by Osler, Hoskin & Harcourt LLP with a team that included Chris Murray, David Hanick and Bridget Campbell (corporate/securities); Jack Silverson (tax) and Rod Davidge (real estate).


Lori K. Sullivan Neal H. Armstrong Rod Davidge Robin Upshall Bridget Campbell Mitchell P. Finkelstein Raj Juneja Jack A. Silverson David Hanick Christopher S. Murray


Davies Ward Phillips & Vineberg LLP Osler, Hoskin & Harcourt LLP