Scott's Real Estate Investment Trust Granted Three Month Mortgage Extension

/NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES/

TORONTO, Sept. 30 /CNW/ - Scott's Real Estate Investment Trust (TSX: SRQ.UN) ("Scott's REIT" or the "Company") today announced that it has received a three month extension on its mortgage which is scheduled to mature on October 1, 2010. The extension has been granted using the same terms as the original loan at 4.9% interest only which will be payable monthly. The full principal amount of the mortgage will be due on January 1, 2011. An additional extension may be made available after the 90-day period, if required.

Scott's REIT revenue and expenses are currently stable given that REIT's long-term leases and tenant default rates are currently low due to its strong national tenant base.

The Company is in active discussions with lenders in an effort to close the financing for the $65M loan and the $20M outstanding bridge facility over the next three months.

Although no assurance can be provided that this will be concluded on favourable terms, the Company believes it is currently well advanced in negotiating the terms of the financing and the discussions have been positive to date.

About Scott's Real Estate Investment Trust

Scott's REIT (TSX: SRQ.UN) is Canada's premier small-box retail property owner with 220 properties in seven provinces across Canada. Scott's REIT's properties are well-located and geographically diverse across Canada and nearly all properties are long-term quadruple net leases. The REIT has approximately 75.6 per cent interest in Scott's Real Estate LP. To find out more about Scott's Real Estate Investment Trust (TSX: SRQ.UN), visit our website at http:// www.scottsreit.com.

Forward-looking Statements

This media release contains forward-looking statements. Such statements are based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from projections suggested in any forward-looking statements due to factors such as the competitive nature of the quick service restaurant industry, the ability of Scott's REIT and Scott's Real Estate LP to execute a growth and development strategy, the reliance of Scott's REIT and Scott's Real Estate LP on key personnel, on Priszm LP and risk associated with the structure of income trusts. Scott's REIT and Scott's Real Estate LP assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements. Additional information identifying risks and uncertainties is contained in Scott's REIT's filings with the Canadian securities regulators, available at www.sedar.com.

%SEDAR: 00022537E

For further information: Trish Moran, 416-624-5133, [email protected]; For media information, please contact: Wilcox Group, 604-488-1100, [email protected]