Slate Office REIT
TSX : SOT.UN

Slate Office REIT

June 24, 2016 09:10 ET

Slate Office REIT Closes $51 Million Public Offering of Units and Announces Completion of Increased Investment of Properties in Atlantic Canada

TORONTO, ONTARIO--(Marketwired - June 24, 2016) - Slate Office REIT (TSX:SOT.UN) (the "REIT") announced today that it has closed its previously announced offering of 6,530,000 trust units of the REIT ("Units") at a price of $7.85 per Unit for gross proceeds of $51.3 million (the "Offering"). The Offering was completed on a bought deal basis through a syndicate of underwriters co-led by TD Securities Inc. and BMO Nesbitt Burns Inc. (the "Underwriters"). The Offering consisted of a treasury offering by the REIT of 4,531,137 Units for gross proceeds of $35.6 million (the "Treasury Offering") and a secondary offering by Subcore Equities Inc., a private corporation managed by Greystone Managed Investments Inc. on behalf of certain pension fund clients, (the "Selling Unitholder") of 1,998,863 Units for gross proceeds of $15.7 million (the "Secondary Offering"). The Secondary Offering includes 160,000 Units which were sold to the Underwriters upon the partial exercise of the over-allotment option that had been granted to the Underwriters by the Selling Unitholder.

The REIT will use the net proceeds of the Treasury Offering to reduce outstanding indebtedness, which may be subsequently redrawn and applied as needed to pay a portion of the purchase price of its previously announced acquisition of Gateway Centre (a suburban office complex in Markham, Ontario, which acquisition is expected to close by the end of the second quarter in 2016), for funding of future acquisitions, and for general trust purposes. The REIT did not receive any proceeds from the Secondary Offering.

In addition to the closing of the Offering, the REIT announced that, effective June 15, 2016, the REIT increased its interest in three office properties located in St. John's, Newfoundland from 30% to 49%, with an additional investment of approximately $27.3 million.

Forward-Looking Statements

Certain information herein constitutes "forward-looking information" as defined under Canadian securities laws which reflect management's expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words "plans", "expects", "does not expect", "scheduled", "estimates", "intends", "anticipates", "does not anticipate", "projects", "believes", or variations of such words and phrases or statements to the effect that certain actions, events or results "may", "will", "could", "would", "might", "occur", "be achieved", or "continue" and similar expressions identify forward-looking statements. Some of the specific forward-looking statements contained herein include, but are not limited to statements with respect to the following: the use of the net proceeds of the Treasury Offering; and the intention of the REIT to complete the closing of the acquisition of the Gateway Centre on the terms and conditions described herein. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transactions contemplated herein are completed.

Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements.

Additional information about risks and uncertainties is contained in the REIT's annual information form for the year ended December 31, 2015 available on SEDAR at www.sedar.com.

About Slate Office REIT (TSX:SOT.UN)

Slate Office REIT is an open-ended real estate investment trust. The REIT's portfolio currently comprises 34 strategic and well-located real estate assets located primarily across Canada's major population centres. The REIT is focused on maximizing value through internal organic rental and occupancy growth and strategic acquisitions. Visit slateam.com/SOT to learn more.

About Slate Asset Management L.P.

Slate Asset Management L.P. is a leading real estate investment platform with over $3 billion in assets under management. Slate is a value-oriented company and a significant sponsor of all its private and publicly-traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm's careful and selective investment approach creates long term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a proven ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.

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