Inovalis Real Estate Investment Trust Announces $40 Million Bought Deal Financing

TORONTO, ONTARIO--(Marketwired - July 5, 2016) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Inovalis Real Estate Investment Trust (the "REIT") (TSX:INO.UN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters (the "Underwriters") co-led by Desjardins Securities Inc. and BMO Capital Markets to sell on a bought deal basis, 4,210,600 trust units of the REIT (the "Units") at a price of $9.50 per Unit for gross proceeds to the REIT of $40,000,700 (the "Offering"). The REIT has also granted the Underwriters an over-allotment option to purchase up to an additional 631,590 units on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the Offering. The Offering is expected to close on or about July 25, 2016 and is subject to customary conditions, including regulatory approval and the approval of the Toronto Stock Exchange.

The REIT intends to use the net proceeds from the Offering as an available source of funding for potential future acquisitions of office properties located in France and Germany and for potential capital expenditures relating to the re-positioning and/or re-development of currently owned properties. Until utilized for these purposes, the REIT intends to repay existing outstanding indebtedness which can then be re-borrowed and used by the REIT as noted above, as well as for working capital and general trust purposes.

The Units will be offered by way of a short form prospectus to be filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada.

The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the "1933 Act") and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Units in the United States or to, or for the account or benefit of, U.S. persons.

Forward-Looking Statements

This press release contains forward-looking statements with respect to the REIT and its operations, strategy, financial performance and financial condition, as well as with respect to the Offering. These statements generally can be identified by the use of forward-looking words such as "forecast", "may", "will", "would", "expect", "estimate", "anticipate", "intend", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of the REIT discussed herein could differ materially from those expressed or implied by such statements. See the risk factors in the public filings of the REIT. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some of the specific forward-looking statements in this press release include, but are not limited to, statements with respect to: the closing of the Offering and the expected closing date thereof; and the REIT's intended use of proceeds of the offering.. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, the failure of the REIT to satisfy the conditions of the Offering or otherwise close the Offering, and changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward - looking statements attributable to the REIT and persons acting on its behalf. The assumptions made in making forward-looking statements are referred to in the public filings of the REIT. The assumptions made in making forward-looking statements in this press release also include the assumption that the REIT will be in a position to satisfy the conditions in respect of the Offering. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. Except as required by applicable law, the REIT specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Additional information about these assumptions and risks and uncertainties is contained in the REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at the REIT's website at www.inovalisreit.com.

About Inovalis Real Estate Investment Trust

Inovalis Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning office properties primarily located in France and Germany but also opportunistically in other European countries where assets meet the REIT's investment criteria. The REIT currently owns an interest in eleven office properties in France and Germany, comprising approximately 1,083,000 square feet of gross leasable area (taking into account the interests in the properties owned in joint ventures). For further information, please contact: