ARTIS ANNOUNCES CLOSING OF EQUITY OFFERING FOR GROSS PROCEEDS OF $92.6
MILLION

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

WINNIPEG, Sept. 2 /CNW/ - Artis Real Estate Investment Trust (TSX: AX.UN) ("Artis" or the "REIT") announced today that it has closed its previously announced public offering of trust units through a syndicate of underwriters led by CIBC World Markets Inc. and Canaccord Genuity Corp. (the "Underwriters"), on a bought deal basis, pursuant to which Artis issued and sold an aggregate of 7,590,000 trust units ("Units") (inclusive of 990,000 Units issued pursuant to the exercise in full of the Underwriters' over-allotment option) at a price of $12.20 per Unit for gross proceeds to Artis of $92,598,000 (the "Financing"). 

Artis intends to use the proceeds of the Financing to acquire additional properties and/or for general trust purposes.   

Artis is a diversified Canadian real estate investment trust investing in office, industrial and retail properties.  Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial income-producing properties, with a major focus on Western Canada. Artis' commercial property comprises approximately 9.6 million square feet of leasable area in 111 properties.  Leasable area by asset class is approximately 29.9% retail, 32.4% office, and 37.7% industrial.  The portfolio is 31.3% in Manitoba, 6.6% in Saskatchewan, 46.9% in Alberta, 14.0% in B.C. and 1.2% in Minneapolis, Minnesota.

The REIT's Distribution Reinvestment Plan ("DRIP") allows unitholders to have their monthly cash distributions used to purchase trust units without incurring commission or brokerage fees, and receive bonus units equal to 4% of their monthly cash distributions.  More information can be obtained at www.artisreit.com.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this press release.

For further information:

Mr. Armin Martens, President and Chief Executive Officer,
Mr. Jim Green, Chief Financial Officer or Ms. Kirsty Stevens, Senior VP - Investor Relations
1.204.947.1250