CALGARY, ALBERTA--(Marketwire - Sept. 8, 2010) - 

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

Northern Property Real Estate Investment Trust ("NPREIT") (TSX:NPR.UN) today announced that it has agreed to sell on a bought-deal basis, subject to regulatory approval, 1,765,000 Units at a price of $25.50 per Unit for aggregate gross proceeds of $45 million to a syndicate of underwriters led by CIBC World Markets Inc. and including BMO Capital Markets Inc., RBC Capital Markets Inc., Scotia Capital Inc., Canaccord Genuity Corp., National Bank Financial Inc. and Dundee Securities Corporation. NPREIT has also granted the underwriters an over-allotment option to purchase up to an additional 176,500 Units at the same offering price, exercisable up to 30 days after the closing of the offering.

On or before September 14, 2010, NPREIT will file with the securities commissions, or other similar regulatory authorities, in each of the provinces and territories of Canada a preliminary short form prospectus relating to the issuance of the Units. Closing of the offering is expected to take place on or about September 28, 2010.

The net proceeds from the sale of the Units will be used to pay down NPREIT's operating line of credit and for general trust purposes.

The first cash distribution to which purchasers of the Units under this offering will be entitled to participate will be for the month of September, with a record date of September 30, 2010 and a payment date on or about October 15, 2010. NPREIT's monthly cash distribution effective in August 2010 is $0.1275 per Unit.

The Units being offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration or applicable exemptions from the registration requirements of such Act. This release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements relating to our distributions and the closing of the proposed offering of Units which are based on our expectations, estimates, forecasts or projections. These statements are not future guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. 

We undertake no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances.