REIT INDEXPLUS Income Fund IPO Closes at $175 Million

TORONTO, April 20 /CNW/ - Middlefield Group, on behalf of REIT INDEXPLUS Income Fund ("REIT INDEXPLUS" or the "Fund"), is pleased to announce that the Fund has completed its initial public offering of 14,600,000 units at a price of $12.00 per unit for gross proceeds of $175,200,000.

REIT INDEXPLUS has been 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 will act 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.

Based on current estimates, the initial target distribution yield for the Fund is expected to be 6.5% per annum based on the original subscription price (or $0.065 per unit per month or $0.78 per unit per annum).

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.

S&P and the TSX have not sponsored, endorsed, sold or promoted the Units or the Fund and neither S&P nor the TSX make any representation regarding the advisability of investing in Units of the Fund. S&P has no relationship to the Fund, but the manager of the Fund (or an affiliate thereof) has entered into an agreement with S&P relating to the licensing by the Fund of certain trademarks and trade names of S&P and the TSX.

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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