Milestone Apartments REIT Announces Closing of Over-Allotment Option

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TORONTO, March 26, 2013 /CNW/ - Milestone Apartments Real Estate Investment Trust (the "REIT") (TSX: MST.UN) announced today the issuance of an additional 2.85 million units of the REIT at a price of $10.00 per unit for gross proceeds of $28.5 million.  The issuance was pursuant to the exercise of an over-allotment option granted to a syndicate of underwriters co-led by BMO Capital Markets and CIBC in connection with the REIT's recent initial public offering. BMO Capital Markets was the sole bookrunner on the transaction. The exercise of the over-allotment option increases the total gross proceeds of the REIT's initial public offering to $228,500,000.

The net proceeds of the over-allotment option will be used by the REIT to indirectly redeem 2,850,000 class B limited partnership units ("Class B Units") of Milestone Multifamily Investors L.P. (the "Partnership") held by MileSouth Apartment Portfolio LP ("MileSouth"), an affiliated entity of Invesco Ltd. Following closing of the over-allotment option, MileSouth will hold 14,000,000 units of the REIT and 7,350,590 Class B Units (each of which are redeemable for REIT units) while MST Investors, LLC ("MST Investors"), an affiliate of The Milestone Group, LLC, will hold 5,513,675 Class B Units, representing an approximate 42.9% and 11.1% retained interest for MileSouth and MST Investors, respectively. TMG Partners, L.P., an affiliate of The Milestone Group, LLC, is the external asset manager of the REIT.

The units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the units in the United States or to, or for the account or benefit of, U.S. Persons.

About Milestone Apartments REIT

The REIT is an unincorporated, open-ended real estate investment trust established under the laws of Ontario. The REIT's portfolio is made up of 52 multifamily garden-style residential properties, comprising 16,944 units that are located in 10 major metropolitan markets throughout the Southeast and Southwest United States. The REIT is the largest real estate investment trust listed on the TSX focused solely on the U.S. multifamily sector. For more information, please visit www.milestonereit.com.

About The Milestone Group

The Milestone Group is a privately-held real estate investment management company with expertise and presence in major metropolitan markets throughout the United States. Founded in 2004, The Milestone Group has a strong track record of investing in the U.S. multifamily sector, including completion of more than US$4.5 billion in multifamily transactions.

Forward-Looking Statements

This press release may contain forward-looking statements which reflect management's current expectations regarding future events, including those relating to the offering.  The forward-looking statements involve risks and uncertainties.  Actual results could differ materially from those projected herein.  The REIT disclaims any obligation to update these forward-looking statements.

SOURCE: Milestone Apartments Real Estate Investment Trust

Robert P. Landin, CEO
Milestone Apartments Real Estate Investment Trust
Tel: [phone]
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