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Press release from CNW Group

FAM Real Estate Investment Trust Announces Closing of $27 Million Equity Financing

Friday, August 02, 2013

FAM Real Estate Investment Trust Announces Closing of $27 Million Equity Financing

08:58 EDT Friday, August 02, 2013

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Aug. 2, 2013 /CNW/ - FAM Real Estate Investment Trust (TSX: F.UN) (TSX: F.WT) (the "REIT") today announced the closing of its previously announced public offering (the "Offering") of 2,564,500 trust units ("Units"), inclusive of 334,500 Units issued pursuant to the full exercise of the over-allotment option, on a bought deal basis, at a price of $9.00 per Unit for total gross proceeds of $23,080,500. The Offering was conducted through a syndicate of underwriters led by TD Securities Inc., Canaccord Genuity Corp. and RBC Capital Markets and also including CIBC, National Bank Financial Inc., Scotiabank, Euro Pacific Canada Inc., Dundee Securities Ltd. and Desjardins Securities Inc.

Concurrent with the closing of the Offering, the REIT issued 425,532 Units on a private placement  basis (the "Concurrent Private Placement") to Huntingdon Capital Corp. (TSX:HNT) (TSX:HNT.DB) (TSX:HNT.WT) ("Huntingdon"), the manager of the REIT, at a purchase price of $9.40 per Unit for gross proceeds of $4 million. Following closing of the Offering and the Concurrent Private Placement, Huntingdon will hold an approximate 26% interest in the REIT assuming the exchange of all Class B limited partnership units of a subsidiary of the REIT held by Huntingdon.

The proceeds from the Offering and Concurrent Private Placement will be used to (i) partially fund the previously announced acquisition by the REIT of The Promontory, a 159,752 square foot Class A office complex on an 11.1 acre site in the Greater Toronto Area, municipally known as 2655 and 2695 North Sheridan Way, Mississauga, Ontario, and (ii) repay amounts drawn on the REIT's revolving credit facility used to finance the previously announced acquisition of a 168,444 square foot urban office building municipally known as 4211 Yonge Street, Toronto, Ontario.

About FAM Real Estate Investment Trust

The REIT is a diversified commercial real estate investment trust focused on owning and acquiring strategically well-located office, industrial and retail real estate located primarily across Canada's large population centres.

Forward-Looking Information:

This press release contains forward-looking statements with respect to the REIT and its operations, strategy, financial performance and financial condition, as well as with respect to the acquisition of The Promontory. These statements generally can be identified by the use of forward-looking words such as "forecast", "may", "will", "would", "expect", "estimate", "anticipate", "intend", "believe" or "continue" or the negative thereof or similar variations. Some of the specific forward-looking statements in this press release include, but are not limited to, statements with respect to the closing of the transactions contemplated herein and the effect of the transactions contemplated herein on the financial performance of the REIT. The actual results and performance of the REIT and the properties discussed herein could differ materially from those expressed or implied by such statements. See the risk factors in the public filings of the REIT. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, the failure to receive any required approvals or consents in connection with the acquisition of The Promontory or the failure to satisfy or waive any other condition to the acquisition of The Promontory, the failure of the REIT to realize expected benefits from the acquisition of The Promontory or 4211 Yonge, the performance of the Promontory or 4211 Yonge generally, and changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf. The assumptions made in making forward-looking statements are referred to in the public filings of the REIT. The assumptions made in making forward-looking statements in this press release also include the assumption that the REIT will be in a position to satisfy the conditions in respect of the acquisition of The Promontory and complete this transaction. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. Except as required by applicable law, the REIT specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Additional information about these assumptions and risks and uncertainties is contained in the REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at the REIT's website at www.famreit.com.

SOURCE: FAM Real Estate Investment Trust

For further information:

Shant Poladian, Chief Executive Officer
FAM Real Estate Investment Trust
Telephone: (647) 256-5002
Email: spoladian@famreit.com

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