Smart Real Estate Investment Trust Closes $350 Million Series O and Series P Senior Unsecured Debentures Issue

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

TORONTO, Aug. 30, 2016 /CNW/ - Smart Real Estate Investment Trust ("SmartREIT") (TSX:SRU.UN) announced today that it has closed its previously announced $350 million aggregate principal amount issue of senior unsecured debentures. The issue included (i) $100 million principal amount of Series O senior unsecured debentures that carry an annual coupon rate of 2.987% and will mature on August 28, 2024 and (ii) $250 million principal amount of Series P senior unsecured debentures that carry an annual coupon rate of 3.444% and will mature on August 28, 2026. The issue was offered by a syndicate of dealers co-led and book-run by CIBC Capital Markets and BMO Capital Markets.

SmartREIT intends to use the net proceeds from the offering to repay existing indebtedness, including the redemption of its $100 million 5.00% Series F senior unsecured debentures due February 1, 2019, $90 million 4.70% Series G senior unsecured debentures due August 22, 2018, the repayment of $100 million outstanding under SmartREIT's revolving credit facility, and for general trust purposes.

DBRS Limited has provided SmartREIT with a credit rating of BBB, with a stable trend, relating to the debentures.

The debentures offered have not been registered under the United States Securities Act of 1933, as amended or state securities laws. Absent registration or an applicable exemption from the registration requirements, this press release does not constitute an offer to sell or solicitation of an offer to buy any of the debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful.

This offering is being made by way of a prospectus supplement dated August 16, 2016 to SmartREIT's existing $2 billion short form base shelf prospectus dated December 22, 2015. The terms of the offering are described in the aforementioned prospectus supplement, which has been filed with Canadian securities regulators in all jurisdictions of Canada where the Series O senior unsecured debentures and the Series P senior unsecured debentures were offered.

About SmartREIT

SmartREIT is one of Canada's largest real estate investment trusts with total assets in excess of $8.6 billion. It owns and manages in excess of 31 million square feet in value-oriented, principally Walmart-anchored retail centres, having the strongest national and regional retailers as well as strong neighbourhood merchants. In addition, SmartREIT is a joint-venture partner in the Toronto and Montreal Premium Outlets with Simon Property Group. SmartREIT's core vision is to provide a value-oriented shopping experience in all forms to Canadian consumers and over time create high quality mixed use developments in urban settings.

With SmartREIT's 2015 acquisition of SmartCentres, SmartREIT has transformed into a fully integrated real estate provider. SmartREIT and SmartCentres have had a long and successful alliance, helping to provide Canadians with value-focused retail shopping centres across the country. Now, the alliance has grown even stronger, the result is a fully integrated real estate provider with expertise in planning, development, leasing, operations and construction - all under one roof. For more information on SmartREIT, visit www.smartreit.com.

SOURCE Smart Real Estate Investment Trust

For further information: Peter Sweeney, Chief Financial Officer, Smart Real Estate Investment Trust, (905) 326-6400 ext. 7865, psweeney@smartreit.com

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Smart Real Estate Investment Trust

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