Dundee REIT

Dundee REIT

January 12, 2007 17:26 ET

Dundee REIT Latest Acquisitions

TORONTO, ONTARIO--(CCNMatthews - Jan. 12, 2007) - DUNDEE REIT (TSX:D.UN) today announced that it has completed the acquisition of 30 and 55 St. Clair Avenue West, two Class A office buildings totalling 426,000 square feet in mid-town Toronto for approximately $110.4 million, representing a 6.7% capitalization rate. The acquired buildings are 96% leased, with an average lease term of 4.8 years, and both offer ample underground parking. The buildings offer a strong tenant profile, including CryptoLogic, Maple Leaf Foods, AOL Canada and the Ontario Government amongst the largest tenants. With the addition of these properties to its portfolio, Dundee REIT has become the dominant owner of office space in the St. Clair sub-market with a portfolio of over 692,000 square feet of office space.

In addition, Dundee REIT announced the completion of three transactions in the fourth quarter of 2006 totalling 506,000 square feet of office space for approximately $103.3 million.

Inter- Occup-
Prop- est ancy on Purchase
erty Acqui- GLA Acquisi- Price Date
Q4 2006 Location Type red (sq.ft.) tion ($000s) Acquired
2121 Argentia Missis- November
Road sauga Office 100% 61,000 96% $ 11,270 16, 2006

Corporate Missis- November
Centre West sauga Office 100% 357,000 86% 66,253 28, 2006

2891 Sunridge December
Way NE Calgary Office 100% 88,000 100% 25,736 20, 2006
Q4 2006 Total 506,000 $ 103,259

Q1 2007
30 and 55
St. Clair January
Ave. West Toronto Office 100% 426,000 96% $ 110,368 9, 2007

In 2006, Dundee REIT acquired an impressive $563 million of high quality office and industrial properties totalling approximately 3.4 million square feet. Taken together, these properties have an average occupancy rate of 98%, an average remaining lease term of 6.2 years and a going in capitalization rate of 8.4%. The fourth quarter acquisitions, as well as the St. Clair properties, were funded by the proceeds from the equity offering completed in December 2006.

"In 2005 we bought just over $350 million of properties," said Michael Cooper, Vice Chairman and CEO of Dundee REIT. "I think we surprised the market when we surpassed that benchmark only six months into 2006. In 2007, our goal is to acquire $1 billion. With the completion of the St. Clair acquisition, and the $244.7 million of office and industrial space currently in our acquisition pipeline, we are off to a great start." Dundee REIT's market capitalization at year end was $1.7 billion and on December 15, 2006 it was added to the S&P/TSX Composite Index.

Dundee REIT is an unincorporated, open-ended real estate investment trust and is Canada's leading provider of high quality, affordable office premises. It is focused on owning, acquiring, leasing and managing mid-sized urban and suburban office and industrial properties in Canada. Dundee REIT's diversified portfolio consists of approximately 19.4 million square feet of gross leasable area, located primarily in its target markets of Toronto, Ottawa, MontrTal, Calgary and Edmonton. 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
    Dundee Real Estate Investment Trust
    J. Michael Knowlton
    President and Chief Operating Officer
    (416) 365-2325
    Email: mknowlton@dundeereit.com
    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