KEYreit announces closing of $23 million equity offering including full exercise of over-allotment option

TORONTO, Jan. 29, 2013 /CNW/ - KEYreit (TSX: KRE.UN) (the "REIT") announced today that it has closed the recently announced public offering of 3,740,950 trust units of the REIT ("Units"), including the full exercise of the over-allotment option, at a price of $6.15 per Unit for aggregate gross proceeds of $23,006,843. The offering was facilitated through a syndicate of underwriters co-led by National Bank Financial Inc. and BMO Capital Markets, and including Canaccord Genuity Corp., Dundee Securities Ltd., GMP Securities L.P. and Macquarie Capital Markets Canada Ltd.

"We are happy the offering was completed successfully, including the full exercise of the over allotment, as it gives us more financial flexibility and decreases our leverage going forward," stated Teresa Neto, Chief Financial Officer of KEYreit.

The net proceeds from the offering, together with certain cash on hand, will be used to repay the full balance of the REIT's IPO Mortgage Loan of approximately $21.8 million, also announced today. After such repayment, the former properties securing the IPO Mortgage Loan will be available for future financing at the REIT's discretion.

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 KEYreit
KEYreit (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 www.keyreit.com

SOURCE: KEYreit

For further information:

For investor information, please contact:
Teresa Neto
Chief Financial Officer
416-361-9953
teresa.neto@keyreit.com

For media information, please contact:
Trevor Boudreau
778-991-7412
trevor.boudreau@keyreit.com