Slate U.S. Opportunity (No. 1) Realty Trust and Slate U.S. Opportunity (No. 2) Realty Trust Combination Transaction and Special Meeting of Unitholders Update

/NOT FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Feb. 13, 2014 /CNW/ - Slate U.S. Opportunity (No. 1) Realty Trust ("SUSO 1") and Slate U.S. Opportunity (No. 2) Realty Trust ("SUSO 2") are pleased to provide an update on the proposed transaction (the "Combination Transaction") pursuant to which SUSO 1 will, among other things, (i) acquire all of the assets of SUSO 2 and U.S. Grocery Anchored Retail (1A), (1B) and (1C) Limited Partnerships ("GAR") and (ii) list as a publicly traded real estate investment trust under the name "Slate Retail REIT" (the "REIT") on the Toronto Stock Exchange (the "TSX").

A presentation that provides an overview of the Combination Transaction and its benefits has been posted at www.slateproperties.ca and a prerecorded teleconference during which executive management discussed the Combination Transaction is now available. Further details on the Combination Transaction are set out in the management information circular and can be found on Sedar.

The recording of the teleconference will be available until March 14, 2014. To access the recording, please dial 905-694-9451 for local calls or 1-800-408-3053 for long distance calls and enter the passcode 5487841.

A special meeting of unitholders of SUSO 1 will be held at the offices of Goodmans LLP (333 Bay Street, Suite 3400, Toronto, Ontario M5H 2S7) on March 3, 2014 at 10:00 a.m. EST to consider the approval of the Combination Transaction. A special meeting of unitholders of SUSO 2 will be held at the offices of Goodmans LLP (333 Bay Street, Suite 3400, Toronto, Ontario M5H 2S7) on March 3, 2014 at 10:30 a.m. EST to consider the approval of the Combination Transaction.

As outlined in the January 30, 2014 press releases, SUSO 1 and SUSO 2 believe that the Combination Transaction:

a)      will provide additional liquidity to SUSO 1 and SUSO 2 unitholders by redeeming all units of SUSO 2 in exchange for TSX-listed class U units of the REIT and by providing class A unitholders of SUSO 1 and class I unitholders of SUSO 1 with a right to convert such units into TSX-listed class U units of the REIT at any time;
   
b)      will enhance tenant diversification and the ability to conduct follow-on offerings to efficiently raise equity capital for future growth
   
c)      will allow all unitholders to participate in the future growth of the REIT, which entity will be managed by Slate Properties Inc. (the current manager of the SUSO 1 and SUSO 2) based on the same investment strategy used by SUSO 1 and SUSO 2;
   
d)      is consistent with the liquidity strategy of SUSO 1 and SUSO 2, as disclosed in their respective initial public offering prospectus; and
   
e)      will provide unitholders with monthly, as opposed to quarterly, cash distributions.

The Combination Transaction is expected to close in March 2014. In addition to approval by the unitholders of SUSO 1 and SUSO 2, the Combination Transaction is conditional upon receiving the approval of unitholders GAR, certain lender consents and the approval of the TSX for the listing of the class U units of the REIT.

About Slate: Slate is a Toronto-based commercial real estate investor and asset manager.  Slate's founding partners have nearly two decades of experience in the industry managing complex real estate transactions in domestic and international markets.  Since 2005, the company has acquired over C$2.3 billion of commercial real estate assets across North America. The company currently co-invests and manages various investment vehicles, including Slate U.S. Opportunity (No. 1) Realty Trust, Slate U.S. Opportunity (No. 2) Realty Trust, Slate U.S. Opportunity (No. 3) Realty Trust, a closed-end private fund focused on U.S. retail assets and owns and manages a portfolio of Canadian office properties with domestic institutional equity.

SOURCE Slate Properties Inc.

For further information:

Blair Welch, Partner, Tel: (416) 644-4267 or Brady Welch, Partner, Tel: (416) 644-4263.