MONTREAL, QUEBEC -- (MARKET WIRE) -- 05/15/2006 -- Management clear to invest in land acquisition & building development

Alexis Nihon REIT (TSX:AN.UN) today announced that unitholders attending the REIT's annual and special meeting approved a resolution allowing management, within certain specific limits, to invest in acquisitions of vacant land and property development.

The resolution amends the REIT's contract of trust, which proscribed acquisition of vacant land not adjoining current portfolio properties.

"Strong demand for real estate over the past few years has significantly increased prices of quality commercial properties, and that has made accretive acquisitions difficult," said Paul J. Massicotte, President and CEO. "The change approved by unitholders today will permit the REIT to acquire vacant land and develop properties that we believe will provide the most attractive return on invested capital."

Mr. Massicotte noted the Alexis Nihon organization engaged in these activities as a normal course of business until its reorganization into the REIT in 2002. Management still retains these capabilities and is fully capable of redeploying them, he said.

About Alexis Nihon REIT

The REIT currently owns interests in 61 office, retail, and industrial properties, including a 426-unit multi-family residential property, all located in the greater Montreal area and the National Capital region. The REIT's portfolio has an aggregate of 8.6 million square feet of leasable area, of which 0.4 million square feet is co-owned.