Edgefront REIT announces terms of previously announced public offering, files a final prospectus and announces July distribution


CALGARY, July 4, 2014 /CNW/ - Edgefront Real Estate Investment Trust (the "REIT") (TSXV:ED.UN) announced today that, in connection with its previously announced marketed public offering, it has entered into an underwriting agreement (the "Underwriting Agreement") with a syndicate of underwriters led by Dundee Securities Ltd. and Scotia Capital Inc. and including National Bank Financial Inc., TD Securities Inc., Desjardins Securities Inc. and GMP Securities L.P. (collectively, the "Underwriters") to sell  8,750,000 trust units at a price of $2.00 per unit for gross proceeds of $17,500,000 (the "Offering").  The Underwriters have also been granted an over-allotment option, exercisable in whole or in part, to purchase up to an additional 875,000 Units at a price of $2.00 per unit for a period of 30 days from the closing date of the Offering, to cover over-allotments, if any, and for market stabilization purposes.

The REIT has filed a final short form prospectus (the "Prospectus") dated July 4, 2014 with securities authorities in all provinces of Canada, other than Quebec. A copy will be available under the REIT's profile on SEDAR at www.sedar.com, once a receipt for the Prospectus has been issued.  The Offering is scheduled to close on or about July 15, 2014 and is subject to closing conditions as provided in the Underwriting Agreement.

The net proceeds from the Offering will be used by the REIT to finance the previously announced acquisition (the "Acquisition") of three income producing industrial properties in Alberta controlled by TriWest Capital Partners through two of its portfolio companies, Triple M Housing Ltd. and Northern Mat & Bridge Limited Partnership.  The remainder of the purchase price for the Acquisition will be satisfied by cash on hand and cash to be received in respect of a draw down on the REIT's credit facility.

July Distribution Declared

The REIT will make a cash distribution in the amount of $0.01333 per Unit, representing $0.16 per Unit on an annualized basis, payable August 15, 2014 to unitholders of record as of July 31, 2014.  The REIT has adopted a distribution reinvestment plan ("DRIP") whereby residents of Canada may elect to have all or a portion of the cash distributions of the REIT automatically reinvested in additional units of the REIT. Eligible unitholders who so elect will receive a bonus distribution equal to 3% of each distribution that was reinvested by them under the DRIP, which bonus distribution will also be reinvested in units. Full details with respect to the DRIP can be found on the REIT's website at www.edgefrontreit.com.

About the REIT

Edgefront REIT is a growth oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of industrial properties located in primary and secondary markets in North America, with an initial focus on Western Canada. Edgefront REIT currently owns a portfolio of 12 properties comprising approximately 470,000 square feet of rentable area.

The REIT has 19,467,362 units issued and outstanding. Additionally, there are 360,000 Class B LP units of Edgefront Limited Partnership issued and outstanding.

The TSXV has in no way passed upon the merits of the proposed Acquisition and has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the completion of the Offering or the Acquisition. Although the REIT believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct.

Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The REIT cautions investors that any forward-looking information provided by the REIT is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: the REIT's ability to complete the Offering or the Acquisition; the state of the real estate sector in the event the Acquisition is completed; the REIT's ability to secure the necessary financing or to be fully able to implement its business strategies and other risks and factors that the REIT is unaware of at this time. The reader is referred to the REIT's short form prospectus for a more complete discussion of risk factors relating to the REIT and their potential effects, available on SEDAR at www.sedar.com.

The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. State securities laws and may not be offered, sold, or delivered directly or indirectly, within the United States or its territories or possessions or to or for the account of any U.S. person (as defined in Regulation S under the U.S. Securities Act) other than pursuant to an available exemption from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any such securities within the United States, or its territories or possessions, or to or for the account of any U.S. person.

SOURCE: Edgefront Real Estate Investment Trust

For further information: Please contact Kelly C. Hanczyk, President and CEO at (403) 817-9497 or Rob Chiasson, CFO at (403) 817-9496.

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