Dundee REIT
TSX : D.UN

Dundee REIT

January 14, 2008 09:48 ET

Dundee REIT Completes $125 Million Convertible Debenture Issue

TORONTO, ONTARIO--(Marketwire - Jan. 14, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

DUNDEE REIT (TSX:D.UN) today announced that it has completed its previously announced public offering of $125,000,000 principal amount of Convertible Unsecured Subordinated Debentures (the "Debentures") with a coupon rate of 6.0% per annum payable semi-annually on June 30 and December 31 commencing on June 30, 2008 and due on December 31, 2014. The Debentures were sold to a syndicate of underwriters led by TD Securities Inc. and Scotia Capital Inc., on a bought deal basis. In addition, Dundee REIT has granted the syndicate an over-allotment option, exercisable for a period of 30 days following closing, to purchase an additional $18,750,000 of Debentures, which, if exercised, would increase the gross proceeds of the offering to $143,750,000.

The net proceeds of the offering will be used for general trust purposes, including for funding possible future acquisitions.

The Debentures have not been and will not be registered under the United States Securities Act of 1933 and accordingly will not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except in limited circumstances.

Dundee REIT is an unincorporated, open-ended real estate investment trust and provides high quality, affordable business premises. It is focused on owning, acquiring, leasing and managing mid-sized urban and suburban office and industrial properties in Canada. Dundee REIT's portfolio currently consists of approximately 6.3 million square feet of gross leasable area, located primarily in Western Canada. Dundee REIT's portfolio is well diversified by geographic location and tenant mix. For more information, please visit www.dundeereit.com.

Contact Information

  • DUNDEE REAL ESTATE INVESTMENT TRUST
    Michael J. Cooper
    Vice Chairman and Chief Executive Officer
    (416) 365-5145
    Email: mcooper@dundeereit.com
    or
    DUNDEE REAL ESTATE INVESTMENT TRUST
    J. Michael Knowlton
    President and Chief Operating Officer
    (416) 365-2325
    Email: mknowlton@dundeereit.com
    or
    DUNDEE REAL ESTATE INVESTMENT TRUST
    Mario Barrafato
    Senior Vice-President and Chief Financial Officer
    (416) 365-4132
    Email: mbarrafato@dundeereit.com
    Website: www.dundeereit.com