REIT INDEXPLUS Income Fund Completes Closing of Over-Allotment Option and Announces May and June 2011 Distributions

TORONTO, May 17 /CNW/ - Middlefield Group, on behalf of REIT INDEXPLUS Income Fund ("REIT INDEXPLUS" or the "Fund"), is pleased to announce that the Fund has completed the issuance of an additional 325,000 units at a price of $12.00 per unit for total gross proceeds of $3,900,000 pursuant to the over-allotment option granted to the agents in the Fund's recently completed initial public offering. Together with the $175,200,000 previously closed, the Fund has raised aggregate gross proceeds of $179,100,000.

REIT INDEXPLUS is designed to provide investors with low-cost exposure to the real estate sector through a combination of indexing and active portfolio management. At least 50% and up to 80% of the Fund's assets will be invested in a diversified portfolio of securities which is designed to track, to the extent practicable, the S&P®/TSX™ Capped REIT Index. The remainder of the Fund's assets will be invested in an actively managed diversified portfolio of issuers operating primarily in the Canadian real estate sector, including the securities of REITs and other real estate issuers not in the Index as well as the securities of global REITs and real estate companies. Middlefield Capital Corporation acts as the investment advisor to the Fund.

The Fund's investment objectives are to:

(i) provide holders of units with stable monthly cash distributions; and

(ii) outperform the S&P®/TSX™ Capped REIT Index on a total return basis.

Middlefield Group is also pleased to announce that distributions of $0.065 per Unit will be payable on each of June 15, 2011 and July 15, 2011 to REIT INDEXPLUS unitholders of record on May 31, 2011 and June 30, 2011 respectively.

The offering was made through a syndicate of agents co-led by CIBC World Markets Inc. and RBC Capital Markets and included Scotia Capital Inc., TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., HSBC Securities (Canada) Inc., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Private Wealth Inc., Raymond James Ltd., Middlefield Capital Corporation, Dundee Securities Ltd., Mackie Research Capital Corporation and Wellington West Capital Markets Inc.

The trust units trade on the Toronto Stock Exchange under the symbol IDR.UN.

This press release contains forward-looking information. The forward-looking information contained in this press release is based on historical information concerning distributions and dividends paid on the securities of issuers historically included in the portfolio of the Fund. Actual future results, including the amount of distributions paid by the Fund, may differ from the monthly distribution amount. Specifically, the income from which distributions are paid may vary significantly due to: changes in portfolio composition; changes in distributions and dividends paid by issuers of securities included in the Fund's portfolio from time to time; there being no assurance that those issuers will pay distributions or dividends on their securities; the declaration of distributions and dividends by issuers of securities included in the portfolio will generally depend upon various factors, including the financial condition of each issuer and general economic and stock market conditions; the level of borrowing by the Fund; and the uncertainty of realizing capital gains.  The risks, uncertainties and other factors that could influence actual results are described under "Risk Factors" in the Fund's prospectus dated March 25, 2011 and other documents filed by the Fund with the Canadian securities regulatory authorities. The forward-looking information contained in this press release constitutes the Fund's current estimate, as of the date of this press release, with respect to the matters covered hereby. Investors and others should not assume that any forward-looking statement contained in this press release represents the Fund's estimate as of any date other than the date of this press release.


 

SOURCE REIT INDEXPLUS Income Fund

For further information:

please visit our website at www.middlefield.com or contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or at 1.888.890.1868.


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