Calloway REIT Announces Closing of its Acquisition of the SmartCentres Platform From Mitchell Goldhar as Part of a Transformational $1.16 Billion Transaction

TORONTO, ON--(Marketwired - May 28, 2015) -

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Calloway Real Estate Investment Trust ("Calloway" or the "REIT") (TSX: CWT.UN) today announced that it has closed the previously announced transaction to acquire the SmartCentres platform from Mitchell Goldhar ("Goldhar") as part of a $1.16 billion transaction that will make Calloway a fully integrated real estate developer and operator by adding SmartCentres' platform of development, leasing, planning, engineering, architecture, and construction capabilities (the "Platform").

The transaction includes the purchase, for $1.1 billion, of interests in a portfolio of 24 properties located principally in Ontario and Quebec, including 20 open format Walmart Supercentre anchored or shadow-anchored shopping centres owned by Goldhar and joint venture partners, principally Wal-Mart Canada Realty Inc., (the "Properties"), collectively with the Platform (the "Transaction").

Calloway is changing its name to SmartREIT and its ticker symbol to SRU.UN to reflect its enhanced capabilities and the considerable brand recognition of SmartCentres and its iconic trademark Penguins, which will remain the core branding on its shopping centres. The ticker symbol change is expected to be made on or before June 12, 2015, and an announcement will be forthcoming on the date that this change becomes effective. In the interim, Calloway will continue to trade on the TSX under the name Calloway -- symbol CWT.UN until the name change and its new trading symbol is instituted on the TSX trading system.

The Transaction was overwhelmingly approved by the non-related party unit holders at the Special Meeting of unit holders held on May 26, 2015.

"I am delighted by the exceptional support we have received from unit holders," said Huw Thomas, President and CEO, Calloway. "Our significantly enhanced portfolio of assets coupled with the internalization of capabilities from the acquisition of the Platform will help position us for the long-term. Since the transaction was announced on April 16, 2015, all of our meetings with investors and industry analysts have provided overwhelming support and approval for our strategic direction and the exceptional capabilities we are building with this purchase," Thomas added. "I am also pleased Mitchell Goldhar elected to increase the number of units he received as consideration as part of the sale by approximately ten percent (in lieu of cash). This represents the maximum amount he was permitted to receive in the form of Calloway securities under our agreements with him, reflecting his continued commitment to our business."