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Press release from Marketwire

Dundee REIT Announces $125 Million Offering of Series B Floating Rate Senior Unsecured Debentures

Tuesday, October 01, 2013

Dundee REIT Announces $125 Million Offering of Series B Floating Rate Senior Unsecured Debentures

16:15 EDT Tuesday, October 01, 2013

TORONTO, ONTARIO--(Marketwired - Oct. 1, 2013) -

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 agreed to issue, on a bought deal basis, C$125 million aggregate principal amount of series B floating rate senior unsecured debentures. These debentures will bear interest at a rate equal to 3-Month CDOR plus 170 basis points, payable quarterly in arrears, and will mature on January 9, 2017. The debentures were sold at a price of $100 per $100 principal amount. The offering is being underwritten by a syndicate led by TD Securities. Subject to customary closing conditions, the offering will close on October 9, 2013. It is a condition of closing to the offering that the debentures be rated at least BBB (low) with a stable trend by DBRS. The offering is being made under Dundee REIT's base shelf prospectus dated November 26, 2012 and the debentures will be issued pursuant to Dundee REIT's trust indenture dated June 13, 2013, as supplemented. These debentures will rank pari passu with Dundee REIT's outstanding senior unsecured debentures.

The net proceeds of the offering will be used for the repayment of existing indebtedness and for general trust purposes.

The debentures offered have not been 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 an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Dundee REIT is an unincorporated, open-ended real estate investment trust. Dundee REIT is focused on owning, acquiring, leasing and managing well-located, high-quality central business district and suburban office properties. Its portfolio currently comprises approximately 24.5 million square feet of gross leasable area in major urban centres across Canada. Dundee REIT's portfolio is well diversified by geographic location and tenant mix. For more information, please visit www.dundeereit.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 REIT's control, which 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, general 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 general economy remains 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 REIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise. Additional information about these assumptions and risks and uncertainties is contained in Dundee REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dundee REIT's website at www.dundeereit.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Dundee REIT
Michael J. Cooper
Vice Chairman and Chief Executive Officer
(416) 365-5145
mcooper@dundeereit.com


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

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