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Press release from Marketwire

Northern Property Real Estate Investment Trust/Norserco Inc. Announce $50.7 Million Financing

Thursday, May 05, 2011

Northern Property Real Estate Investment Trust/Norserco Inc. Announce $50.7 Million Financing16:23 EDT Thursday, May 05, 2011CALGARY, ALBERTA--(Marketwire - May 5, 2011) -NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.Northern Property Real Estate Investment Trust (TSX:NPR.UN) and NorSerCo Inc. (together, "NPR"), whose stapled units, each being comprised of one trust unit and one common share (the "Stapled Units"), trade on the Toronto Stock Exchange, today announced that it has agreed to sell on a bought deal basis, subject to regulatory approval, 1,700,000 Stapled Units at a price of $29.85 per Stapled Unit for aggregate proceeds of $50.7 million to a syndicate of underwriters led by CIBC and including BMO Capital Markets Inc., RBC Capital Markets Inc., Scotia Capital Inc., Dundee Securities Corporation, GMP Securities L.P., Macquarie Capital Markets Canada Ltd. and TD Securities Inc. (together, the "Underwriters"). The Underwriters have been granted an over-allotment option to purchase up to an additional 255,000 Stapled Units at the same offering price, exercisable up to 30 days after the closing of the offering.On or before May 11, 2011, NPR will file with the securities regulators in each of the provinces and territories of Canada, a preliminary short form prospectus to qualify the issuance of the Stapled Units. Closing of the offering is expected to take place on or about May 27, 2011.The net proceeds from the sale of the Stapled Units will be used principally to fund several acquisitions which NPR completed in the first quarter of 2011, including 151 apartment units in Nanaimo and 230 apartment units in Jasper as well as some pending acquisitions, to repay indebtedness and for general trust purposes. With respect to the pending acquisitions, NPR has entered into agreements to acquire a portfolio of properties in the City of Iqaluit including 159 residential units, a newly developed office building, a hotel, several strategically located residential and commercial development properties and an older operating hotel which will ultimately be demolished (the "Iqaluit Acquisitions"). Management expects that the Iqaluit Acquisitions will be concluded in the second quarter of 2011; however, they remain subject to customary due diligence and closing conditions.The first cash distribution to which purchasers of the Stapled Units under this offering will entitled to receive will be for the month of May, with a record date of May 31, 2011 and a payment date of June 15, 2011. NPR's current monthly cash distribution is $0.1275 per Stapled Unit.The Stapled Units being offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration or applicable exemptions from the registration requirements of such Act. This release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTSThis news release contains forward-looking statements relating to our distributions and the closing of the proposed offering of Stapled Units which are based on our expectations, estimates, forecasts or projections. These statements are not future guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made.FOR FURTHER INFORMATION PLEASE CONTACT: Mr. B. James BrittonNorthern Property Real Estate Investment TrustPresident and Chief Executive Officer(403) 531-0720ORMr. David LeimanNorthern Property Real Estate Investment TrustChief Financial Officer(403) 531-0720