TORONTO, ONTARIO--(Marketwire - Jan. 18, 2011) -

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 4,130,000 REIT Units, Series A on a bought deal basis at a price of $30.30 per Unit to a syndicate of investment dealers led by TD Securities Inc. for gross proceeds of $125,139,000. 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 619,500 Units which, if exercised, would increase the gross offering size to $143,909,850. The offering is scheduled to close on or about February 4, 2011, and is subject to regulatory approval.

The net proceeds from the offering will be used to partially fund the acquisition of Realex Properties Corp., to fund potential future acquisitions and for general trust purposes. This offering is not conditional on the acquisition by Dundee REIT of Realex Properties Corp.

In Q4 2010 alone, Dundee REIT completed approximately $276 million of acquisitions, followed by another two acquisitions for approximately $88 million in January 2011. In addition, Dundee REIT expects to acquire approximately $373 million of assets pursuant to an agreement to acquire all of the outstanding common shares of Realex Properties Corp. for cash consideration of approximately $154.4 million. The acquisition of Realex Properties Corp., which requires shareholder approval by Realex's shareholders, will be carried out by way of a court-approved plan of arrangement. Realex is an owner and manager of primarily office properties located principally in Alberta and Southwestern Ontario and owns interests in 24 office and industrial properties comprising approximately 1.8 million square feet.

The following table provides an overview of Dundee REIT's acquisitions in 2010 and to date in 2011:

Acquisitions			Property Type		Approx. GLA (sq. ft.)		Purchase Price ($millions)		Date
Q1 - Q3 2010 *			Office / Industrial		3,571,696		639.5
Q4 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		8.6		November 5, 2010
	30 Simmonds Dr. & 105 Akerley Blvd., Halifax		Industrial		94,676		4.5		November 22, 2010
	4259 – 4299 Canada Way, Burnaby		Office		118,536		25.4		December 15, 2010
	Renfrew Business Centre, Vancouver		Office		81,662		35.1		December 21, 2010
	AFIAA Portfolio, Toronto, Mississauga and Calgary		Office		198,271		43.7		December 21, 2010
	10250 – 101st Street, Edmonton,		Office		296,998		83.4		December 22, 2010
	580 Industrial Road, London		Industrial		113,595		9.4		December 30, 2010
	100 Gough Road, Markham		Office		111,840		30.0		December 30, 2010
Total Closed in 2010					4,946,164		$ 915.7
	Saskatoon Square, Saskatoon,		Office		209,600		50.0		January 4, 2011
	400 Cumberland Street, Ottawa		Office		174,921		38.3		January 17, 2011
Total Closed in 2010 & 2011					5,330,685		$ 1,004.0
	Realex Properties Corp.		Office / Industrial		1,837,300		$373.4
TOTAL CLOSED AND UNDER CONTRACT					7,167,985		$ 1,377.4

*including transaction costs

Dundee REIT's acquisition program has significantly improved the quality of the Trust's assets and further diversified its portfolio across Canada. Subsequent to this offering, and including the acquisitions under contract, Dundee REIT will be operating near its target debt-to-gross book value of 55%.

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 12.6 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.

FOR FURTHER INFORMATION PLEASE CONTACT:

Michael J. Cooper
Dundee Real Estate Investment Trust
Vice Chairman and Chief Executive Officer
(416) 365-5145
mcooper@dundeereit.com

OR

J. Michael Knowlton
Dundee Real Estate Investment Trust
President and Chief Operating Officer
(416) 365-2325
mknowlton@dundeereit.com

OR

Mario Barrafato
Dundee Real Estate Investment Trust
Senior Vice-President and Chief Financial Officer
(416) 365-4132
mbarrafato@dundeereit.com