Dundee Industrial REIT
TSX : DIR.UN

Dundee Industrial REIT

October 04, 2012 08:22 ET

Dundee Industrial REIT Completes $155.0 Million Initial Public Offering

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

DUNDEE INDUSTRIAL REIT (TSX:DIR.UN) announced today that it has completed its initial public offering of units ("Units") at a price of $10.00 per Unit. The offering resulted in 15,500,000 Units being issued for gross proceeds of $155.0 million. Concurrently with the offering, Dundee Corporation and Michael J. Cooper purchased $17.5 million and $7.5 million of Units, respectively, at the issue price. Dundee Industrial REIT has granted the underwriters an over-allotment option, exercisable for a 30-day period following closing to purchase up to an additional 2,325,000 Units, which, if exercised, would increase the gross proceeds to $178.2 million. The offering was underwritten by a syndicate of underwriters led by TD Securities Inc.

The Units will commence trading on the Toronto Stock Exchange today under the symbol DIR.UN. The first distribution, which will be for the period from and including October 4, 2012 to October 31, 2012, is expected to be paid on November 15, 2012 to unitholders of record on October 31, 2012, and is estimated to be $0.05081 per unit. Dundee Industrial REIT intends to make subsequent monthly distributions in the amount of $0.05625 per unit commencing on or about December 15, 2012 for the month of November 2012.

Dundee Industrial REIT used the proceeds of the offering and concurrent sales to Dundee Corporation and Michael J. Cooper, to satisfy the cash portion of the purchase price for 77 industrial properties that it purchased from Dundee REIT, including seven properties purchased from Dundee REIT and its co-owner. The aggregate purchase price for these assets was approximately $659.9 million and was satisfied by the assumption of mortgages, the issuance to Dundee REIT of $160.3 million of limited partnership units of Dundee Industrial Limited Partnership, which are exchangeable for units of Dundee Industrial REIT, and the balance by payment of cash. Following the transaction, Dundee REIT holds an approximate 47.1% interest in Dundee Industrial REIT.

This press release is not an offer of securities for sale in the United States. The units being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly are not being offered for sale and may 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 pursuant to an exemption from the registration requirements of that Act.

Dundee Industrial REIT is an unincorporated, open-ended real estate investment trust. Dundee Industrial REIT owns a portfolio of 77 primarily light industrial properties comprising approximately 6.0 million square feet of gross leaseable area in key industrial markets across Canada. Its objective is to build upon and grow its portfolio and to provide stable, sustainable and growing distributions to its unitholders. For more information, please visit www.dundeeindustrial.com.

This press release may contain forward-looking statements with respect to Dundee Industrial REIT and its operations, strategy, financial performance and financial condition. These statements generally can be identified by the use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intend", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of Dundee Industrial REIT discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward-looking statements attributable to Dundee Industrial REIT and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. Except as required by applicable law, Dundee Industrial REIT specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

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