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Press release from Marketwire

Dundee International REIT Announces $81 Million Bought Deal Financing and Secondary Offering

Tuesday, March 27, 2012

Dundee International REIT Announces $81 Million Bought Deal Financing and Secondary Offering16:34 EDT Tuesday, March 27, 2012TORONTO, ONTARIO--(Marketwire - March 27, 2012) -NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATESDUNDEE INTERNATIONAL REIT (TSX:DI.UN) and LSF REIT Holdings S.à r.l., an affiliate of Lone Star Real Estate Fund (U.S.) L.P (the "Selling Unitholder") have entered into an agreement to sell 8,000,000 units of Dundee International REIT (the "Units") on a bought deal basis at a price of $10.10 per Unit to a syndicate of underwriters led by TD Securities Inc. (the "Underwriters"). Dundee International REIT will issue 4,000,000 Units for gross proceeds to Dundee International REIT of $40,400,000, and the Selling Unitholder will sell 4,000,000 Units for gross proceeds to the Selling Unitholder of $40,400,000 (collectively, the "Offering"). The Underwriters will have an option to purchase up to an additional 600,000 Units from Dundee International REIT at a price of $10.10 per Unit and 600,000 Units from the Selling Unitholder at a price of $10.10 per Unit (the "Over-Allotment Option"), exercisable in whole or in part at any time for a period of up to 30 days following closing of the Offering.Dundee International REIT is currently at various stages of due diligence and negotiation with respect to over €300 million of potential acquisitions of office properties in Germany. All of the properties are located in major cities and are leased on a long-term basis to tenants with strong covenants. Dundee International REIT expects to continue its negotiations in respect of these acquisitions and will actively pursue these and other acquisition and investment opportunities. However, there can be no assurance that any of these discussions will result in a definitive agreement and, if they do, what the terms or timing of any acquisition would be. Dundee International REIT intends to use the net proceeds from the sale of Units to fund future acquisitions and for general trust purposes. Dundee International REIT will not receive any proceeds from the Units sold by the Selling Unitholder. "We are very pleased with the opportunities to grow and diversify our business by adding high quality accretive acquisitions to our portfolio in Germany" said Jane Gavan, Chief Executive Officer of Dundee International REIT.Upon completion of the Offering, the Selling Unitholder will hold exchangeable notes of a subsidiary of Dundee International REIT that are collectively exchangeable into Units representing an approximate 7.2% economic interest in Dundee International REIT (an approximate 6.0% economic interest if the Over-Allotment Option is exercised in full).Closing of the Offering is expected to occur on or about April 17, 2012. The Offering is subject to certain customary conditions, including the approval of the Toronto Stock Exchange. 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 International REIT is an unincorporated, open-ended real estate investment trust that provides investors with the opportunity to invest in commercial real estate exclusively outside of Canada. Dundee International REIT's portfolio currently consists of approximately 12.5 million square feet of gross leasable area of office, industrial and mixed use properties across Germany. For more information, please visit www.dundeeinternational.com. This press release may contain forward-looking information within the meaning of applicable securities legislation. Forward looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dundee International REIT's control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, global and local economic and business conditions; the financial condition of tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and currency rate functions. Our objectives and forward-looking statements are based on certain assumptions, including that the Canadian and German economies remain stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this press release speaks as of the date of this press release. Dundee International REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is contained in Dundee International REIT's filings with securities regulators, including its prospectus dated July 21, 2011 and its latest MD&A. These filings are also available at Dundee International REIT's website at www.dundeeinternational.com. FOR FURTHER INFORMATION PLEASE CONTACT: Michael J. CooperDundee International REITVice Chairman(416) 365-5145mcooper@dundeeinternational.comORP. Jane GavanDundee International REITPresident and Chief Executive Officer(416) 365-6572jgavan@dundeeinternational.comORDouglas P. QuesnelDundee International REITChief Financial Officer(416) 365-4134dquesnel@dundeeinternational.com