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Press release from Marketwire

KEYreit Announces $20.0 Million Treasury Financing of Trust Units

Wednesday, January 09, 2013

KEYreit Announces $20.0 Million Treasury Financing of Trust Units15:33 EST Wednesday, January 09, 2013TORONTO, ONTARIO--(Marketwire - Jan. 9, 2013) -NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.KEYreit (TSX:KRE.UN) ("KEYreit" or the "REIT") today announced that it has entered into an agreement with a syndicate of underwriters co-led by National Bank Financial Inc. and BMO Capital Markets to issue to the public, subject to regulatory approval, on a bought deal basis, 3,253,000 trust units of the REIT (the "Trust Units"). The Trust Units will be offered at a price of $6.15 per Trust Unit, for gross proceeds to KEYreit of approximately $20.0 million. As part of this offering the REIT's CEO, John Bitove and/or affiliated parties, have agreed to purchase 162,650 trust units for proceeds of approximately $1.0 million. KEYreit has also granted the underwriters an over-allotment option to purchase up to 487,950 additional Trust Units, representing 15% of the size of the treasury offering. The over allotment option may be exercised, in whole or in part, up to 30 days after the closing of the offering.The net proceeds from the offering will be used to partially repay the REIT's IPO Mortgage Loan and to fund future property acquisitions.KEYreit will, by January 15, 2013, file with the securities commissions and other similar regulatory authorities in each of the provinces of Canada (excluding Quebec), a preliminary short form prospectus relating to the issuance of the Trust Units. Closing of the offering is expected to take place on or about January 29, 2013.This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful and is not an offering of securities for sale in the United States. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the United States absent registration or pursuant to applicable exemption from registration. About KEYreitKEYreit (TSX:KRE.UN) is Canada's premier small-box retail property owner with 227 properties in nine provinces across Canada. KEYreit's properties are well located and geographically diverse across Canada with the majority of all properties containing long-term quadruple net leases. To find out more about KEYreit (TSX:KRE.UN), visit our website at StatementsThis document contains certain information that may constitute forward-looking information within the meaning of securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward looking information may relate to management's future outlook and anticipated events or results, including the completion of the contemplated offering of Trust Units and partial repayment of the IPO Mortgage Loan. Forward looking-information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what is currently expected. Such factors include risks relating to KEYreit's reliance on key tenants, risks associated with investment in real property, competition, reliance on key personnel, financing and refinancing risks, distributions, environmental matters, tenant risks, risks related to current economic conditions and other risk factors more particularly described in KEYreit's Annual Information Form for the year ended December 31, 2011. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Other than as required by applicable Canadian securities law, KEYreit does not undertake to update this information at any particular time. Additional information identifying risks and uncertainties is contained in KEYreit's filings with the Canadian securities regulators, available at FURTHER INFORMATION PLEASE CONTACT: Contact Information: For investor information, please contact:KEYreitTeresa Neto416-361-9953Teresa.Neto@KEYreit.comFor media information, please contact:KEYreitTrevor