Dundee REIT
TSX : D.UN

Dundee REIT

November 29, 2010 08:02 ET

Dundee REIT Announces $100 Million Equity Offering

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2010) -

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

DUNDEE REIT (TSX:D.UN) announced today that it has entered into an agreement to sell 3,360,000 REIT Units, Series A on a bought deal basis at a price of $29.85 per Unit to a syndicate of investment dealers led by TD Securities Inc. for gross proceeds of $100,296,000. In addition, Dundee REIT has granted the syndicate an over-allotment option, exercisable for a period of 30 days following closing, to purchase up to an additional 504,000 Units which, if exercised, would increase the gross offering size to $115,340,400. The offering is scheduled to close on or about December 21, 2010, and is subject to regulatory approval.

The net proceeds of the offering will be used to fund committed and future acquisitions and for general trust purposes.

Since the beginning of 2010, Dundee REIT has completed approximately $689 million of acquisitions, adding over four million square feet of properties to its portfolio. In addition, Dundee REIT has approximately $240 million of office properties under contract. The seven properties under contract have strong tenant profiles, average in-place net rents below market rents and are located across Canada, including the Provinces of British Columbia, Alberta, Saskatchewan and Ontario. The acquisitions, most of which are expected to close prior to the end of the year, comprise 906,000 square feet, have an average lease term of 5.2 years and an occupancy rate of 92%. In addition to the approximately $240 million of properties subject to binding agreements, Dundee REIT continues to see acquisition opportunities and is in various stages of due diligence on numerous additional properties. However, there can be no assurance that Dundee REIT will ultimately acquire some or all of these properties that are under contract or are subject to due diligence and, should an acquisition proceed, what the terms or timing of any acquisition would be.

The following table provides an overview of Dundee REIT's acquisitions in 2010:
 
Location   Property Type   Approx. GLA (sq. ft.)   Purchase Price ($millions)   Closing Date
Adelaide Place, Toronto   Office   654,249   $ 217.5   January 18, 2010
Aviva Corporate Centre, Toronto   Office   436,704   45.9   February 10, 2010
10130 - 103rd Street, Edmonton   Office   265,625   90.0   April 16, 2010
2340 St. Laurent Blvd., Ottawa   Industrial   114,724   11.3   April, 26, 2010
4915 - 52 Street, Yellowknife   Redevelopment       0.7   April 30, 2010
Financial Building, Regina   Office   65,763   14.2   May 4, 2010
30 Eglinton Avenue West, Mississauga   Office   164,987   38.5   May 31, 2010
625 Cochrane Drive, Markham   Office   161,997   29.9   June 18, 2010
Valleywood Corporate Centre, Markham   Office   154,116   31.7   June 18, 2010
275 Wellington Street East, Aurora   Industrial   317,000   25.4   July 30, 2010
8000 Av Blaise-Pascal, Montréal   Industrial   206,305   11.3   July 30, 2010
6509 Airport Road, Mississauga   Office   60,000   12.3   August 3, 2010
3035 Orlando Drive, Mississauga   Office   16,754   2.4   August 3, 2010
2075 Kennedy Road, Toronto   Office   201,730   31.8   August 12, 2010
1421 Rue Ampère, Boucherville   Industrial   457,875   29.4   September 2, 2010
1313 Autoroute Chomedey, Laval   Industrial   184,493   12.7   September 2, 2010
150 Metcalfe Street, Ottawa   Office   109,374   34.5   September 16, 2010
Brownlow Centre, Halifax   Office   60,739   7.2   October 5, 2010
970 Fraser Drive, Burlington   Office   95,444   6.8   October 19, 2010
2200 & 2204 Walkley Road, Ottawa   Office   156,551   22.1   November 2, 2010
2625 Queensview Drive, Ottawa   Office   46,156   8.7   November 5, 2010
30 Simmonds Dr. & 105 Akerley Blvd., Halifax   Industrial   94,676   4.6   November 22, 2010
                 
Total Closed in 2010       4,025,262   $ 688.9    
Acquisitions under contract   Office   906,000   239.8    
TOTAL CLOSED AND UNDER CONTRACT       4,931,262   $ 928.7    

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 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 11.3 million square feet of gross leasable area across 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
    mcooper@dundeereit.com
    or
    Dundee Real Estate Investment Trust
    J. Michael Knowlton
    President and Chief Operating Officer
    (416) 365-2325
    mknowlton@dundeereit.com
    or
    Dundee Real Estate Investment Trust
    Mario Barrafato
    Senior Vice-President and Chief Financial Officer
    (416) 365-4132
    mbarrafato@dundeereit.com