Inovalis Real Estate Investment Trust Announces Clarifications to be included in Prospectus

/NOT FOR DISSEMINATION IN THE UNITED STATES./

TORONTO, April 1, 2013 /CNW/ - Inovalis Real Estate Investment Trust (the "REIT") announced today that, at the request of the Ontario Securities Commission ("OSC") following the OSC's review of  the marketing of the REIT's initial public offering, the following clarifications will be included in the REIT's (final) prospectus (the "Final Prospectus"):

1. The comparison between the NOI Margin of the Initial Properties and the NOI Margin of various Canadian diversified real estate investment trusts included in the REIT's preliminary prospectus dated February 28, 2013 (the "Preliminary Prospectus"), as well as statements in the Preliminary Prospectus indicating that the REIT has experienced relatively high NOI margins as compared to similar Canadian real estate investment trusts, will be removed from the Final Prospectus.
2. Due to normal course divestitures during 2012, the number of properties managed by Inovalis has decreased from 152 commercial real estate properties worth approximately $2.6 billion, to 97 commercial real estate properties worth approximately $2.3 billion and the disclosure in the Final Prospectus will reflect this change.
3. The disclosure in the Final Prospectus with respect to the possible acquisition candidates (the "Candidate Properties") for the REIT will highlight:
   (a)     that the REIT has not yet commenced the acquisition process for any of the Candidate Properties;
   (b)     that the REIT cannot commence the acquisition process for any of the Candidate Properties until Inovalis S.A. ("Inovalis"), as asset manager of the Candidate Properties, has determined to divest a particular property;
   (c)     that the sale of any Candidate Properties would be subject to the consent of (i) the underlying fund which owns the particular property, and (ii) the financial institutions which own the relevant leasehold (if applicable);
   (d)     that the number of Candidate Properties has been reduced from nine (as disclosed in the Preliminary Prospectus) to six, as one of the Candidate Properties has been sold and two of the Candidate Properties do not meet all of the Investment Criteria today; and
   (e)     the date by which the REIT expects each Candidate Property to become available for acquisition by the REIT.
4. The Final Prospectus will disclose that the reference to $600 million of real estate assets out of Inovalis' $2.6 billion portfolio currently meeting the Investment Criteria contained on Slide 14 of the management investor presentation and the statement that these properties could be vended into the REIT in the next 12 months, as discussed on the National Retail Conference Call on March 7, 2013 at 11:00 AM (EST) was meant only for illustrative purposes to highlight a portion of the Inovalis portfolio that could become available to the REIT. Although the REIT intends to consider the acquisition of these properties, all of such properties do not currently match all of the REIT's investment criteria and therefore no assurance can be given that any of such properties will be purchased by the REIT.

In connection with the closing of the Offering, the REIT will own an interest in four properties.  When making an investment decision with respect to the REIT, an investor should not assume that the REIT will be acquiring any properties within the next twelve months or that its growth will be based on the acquisition of the Candidate Properties. The Candidate Properties have been included in the Preliminary Prospectus and Final Prospectus to illustrate the types of properties that may become available for purchase by the REIT pursuant to the Right of First Opportunity granted to it by Inovalis. As will be described in the Final Prospectus, there are no assurances that the REIT will acquire any of the Candidate Properties. Please refer to the Risk Factor contained in the Final Prospectus entitled "We may not be able to source suitable acquisitions".

The Final Prospectus is expected to be filed with the Canadian Securities Administrators on or about April 1, 2013.

Capitalized terms used but not defined above, have the meanings given to them in the Final Prospectus.

This press release contains forward-looking statements which reflect the REIT's current expectations regarding future events. 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.

About Inovalis Real Estate Investment Trust

On closing of the Offering, the REIT will acquire an interest in a portfolio of income-producing office properties that is currently being managed by Inovalis. This portfolio consists of four office properties in France and Germany, comprising 529,267 square feet (49,170 square metres) of gross leasable area. The REIT will engage Inovalis to provide strategic, advisory, asset management, project management, construction management, property management and administrative services necessary to manage our day-to-day operations.

SOURCE: Inovalis Real Estate Investment Trust

David Giraud
Chief Executive Officer
Inovalis Real Estate Investment Trust
[phone]