Canadian REIT Income Fund
TSX : RIU.UN

Canadian REIT Income Fund
First Asset

First Asset

September 16, 2011 08:40 ET

Canadian REIT Income Fund Closes Initial Public Offering

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2011) - Canadian REIT Income Fund (the "Fund") (TSX:RIU.UN) is pleased to announce the closing of its initial public offering. Pursuant to the offering, the Fund issued an aggregate of 4.75 million units at $10 per unit, for gross proceeds of $47.5 million by way of cash subscriptions and pursuant to the exchange option. The units are listed on the Toronto Stock Exchange ("TSX") under the symbol RIU.UN.

The Fund will invest in a portfolio comprised primarily of equity securities and convertible debentures of Canadian REITs and real estate issuers. The Fund's portfolio will be actively managed by First Asset Investment Management Inc. (the "Manager").

The Fund's investment objectives are to provide holders of units with:

(i) quarterly distributions; and

(ii) the opportunity for capital appreciation.

The Fund will not have a fixed distribution amount. The amount of quarterly distributions will be based on the Manager's assessment of anticipated cash flow and anticipated expenses of the Fund from time to time. The initial targeted distribution is 5.5% per annum on the subscription price of $10 per unit ($0.1375 per unit per quarter or $0.55 per annum).

The syndicate of agents for this offering was led by CIBC, National Bank Financial Inc. and RBC Capital Markets, and included BMO Capital Markets, Scotia Capital Inc., TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., HSBC Securities (Canada) Inc., Raymond James Ltd., Macquarie Private Wealth Inc. and Manulife Securities Incorporated.

The Fund has granted the agents for the offering an over-allotment option to acquire additional units on the same terms exercisable at any time during the next thirty days.

Contact Information

  • First Asset
    Rob MacNiven
    Investor Relations
    416-642-1289 or 1-877-642-1289
    www.firstasset.com