Welsh Property Trust, LLC increases its effective interest in WPT Industrial Real Estate Investment Trust

TORONTO, July 15, 2013 /CNW/ - Welsh Property Trust, LLC ("Welsh") announced today that it, through its subsidiary WPT Inner Park Drive, LLC, has acquired beneficial ownership of an additional 2,192,347 Class B partnership units (the "Class B Units") of WPT Industrial, LP (the "Partnership"), the operating subsidiary of WPT Industrial Real Estate Investment Trust (the "REIT"), representing an approximate 9.0% effective interest in the REIT (assuming all Class B Units are redeemed for trust units of the REIT, but otherwise on a non-diluted basis). These additional Class B Units were acquired pursuant to the previously-announced indirect acquisition by the REIT (through the Partnership) of an industrial property located in Pontoon Beach, Illinois (the "Property") from Welsh.

After giving effect to this purchase, Welsh now directly and indirectly owns 13,059,709 Class B Units, representing an approximate 53.3% effective interest in the REIT (assuming all Class B Units are redeemed for trust units of the REIT, but otherwise on a non-diluted basis) and 100% of the outstanding Class B Units.

The number of Class B Units issued to a subsidiary of Welsh in connection with the acquisition of the Property was determined by applying a price of US$9.67 per unit, which is the 20-trading day volume-weighted average price for the trust units of the REIT for the period up to and including June 28, 2013 (the last trading day before the REIT's announcement of the proposed acquisition). On June 28, 2013, the noon rate of exchange posted by the Bank of Canada for the conversion of U.S. dollars into Canadian dollars was US$1.00 equals Cdn$1.0512. Applying this noon rate, each Class B Unit was valued at Cdn$10.17.

Welsh, through its subsidiary, indirectly acquired the Class B Units pursuant to the contribution of its indirect interest in the Property to the Partnership. Welsh's position may be increased (whether pursuant to property acquisition transactions or otherwise) or decreased in the future as considered appropriate in light of investment criteria, market conditions and other factors or circumstances and in accordance with the provisions of applicable securities legislation.

Under the contribution agreement entered into in connection with the acquisition of the Property, the REIT and Welsh agreed to certain terms that apply to the Class B Units issued under such contribution agreement unless and until the REIT has received all necessary acceptances and approvals from the Toronto Stock Exchange for the issuance and listing on the Toronto Stock Exchange of such Class B Units, including a restriction on the transfer or redemption of such Class B Units and a liquidity right exercisable whereby the holder may request the Partnership to purchase for cancellation all or any portion of such Class B Units. Further details are available in the REIT's material change report dated July 8, 2013 and the contribution agreement, each of which is available under the REIT's profile on the SEDAR website at www.sedar.com.


SOURCE: Welsh Property Trust, LLC

For further information:

Further information (including a copy of the report to be filed with Canadian securities regulators in connection with this transaction) can be obtained by contacting:

Matt Cimino, General Counsel & Secretary   
Welsh Property Trust, LLC
4350 Baker Road, Suite 400
Minnetonka, Minnesota, United States 55343
(952) 837-3083

Profil de l'entreprise

Welsh Property Trust, LLC

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WPT Industrial Real Estate Investment Trust

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