Dundee REIT
TSX : D.UN

Dundee REIT

December 12, 2006 09:09 ET

Dundee REIT Completes $150 Million Equity Offering

TORONTO, ONTARIO--(CCNMatthews - Dec. 12, 2006) -

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

This news release contains forward looking information that is based upon assumptions and is subject to risks and uncertainties as indicated in the cautionary note contained within this press release.

DUNDEE REIT (TSX:D.UN) announced today the closing of its previously announced public offering of 4,110,000 REIT Units, Series A ("Units") at a price of $36.50 per Unit for gross proceeds of $150,015,000. The offering was completed through a syndicate of investment dealers led by TD Securities Inc. and CIBC World Markets Inc.

The net proceeds of the offering will be used for general trust purposes, including the funding of strategic acquisitions and to repay certain revolving indebtedness incurred in connection with these acquisitions. The following table provides an overview of the properties in respect of which Dundee REIT has entered into an agreement to purchase, including one property that was recently acquired. The three acquisitions under contract are subject to a variety of conditions and there can be no assurance that they will be completed.



Approx.
Location of Property Interest to GLA
Property Type be Acquired Occupancy (sq. ft.) Status
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Airport Corporate
Centre West,
Mississauga Office 100% 86% 357,000 Completed
30 and 55 St.
Clair Avenue Under
West, Toronto Office 100% 96% 435,000 contact
2891 Sunridge Under
Way NE, Calgary Office 100% 100% 88,000 contact
625 Agnes St., Under
New Westminster Office 100% 88% 83,000 contact
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963,000
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The aggregate purchase price for the foregoing acquisitions will be approximately $219.0 million. Taken together, these properties have an average occupancy rate of 97%, an average remaining lease term of 6.8 years and a going in capitalization rate of 7.2%. The average occupancy rate takes into account space subject to a head lease with the vendor of Airport Corporate Centre West, which is not reflected in the occupancy figure for that property in the table above.

In addition, Dundee REIT is currently in negotiations with respect to acquiring $244.9 million of industrial space.

The units being offered 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 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 18.8 million square feet of gross leasable area, located primarily in its target markets of Toronto, Ottawa, Montreal, Calgary and Edmonton. Dundee REIT's portfolio is well diversified by geographic location and tenant mix. For more information, please visit www.dundeereit.com.

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