NADG NNN Real Estate Investment Trust Announces Closing Of Initial Public Offering

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Aug. 17, 2017 /CNW/ - NADG NNN Real Estate Investment Trust (the "Trust") is pleased to announce that it has successfully completed its previously announced initial public offering (the "Offering") of Class A Units, Class I Units and/or Class U Units of the Trust. Pursuant to the Offering, the Trust sold 2,372,200 Class A Units and 708,800 Class I Units at a price of C$10.00 per Class A Unit and Class I Unit and 957,200 Class U Units at a price of U.S.$10.00 per Class U Unit for gross proceeds of C$29,405,115 and U.S.$9,069,470. 

As previously announced, the Trust intends to use the net proceeds of the Offering primarily to indirectly acquire, own and lease interests in a portfolio of diversified income-producing commercial real estate properties in the U.S. with a focus on single tenant outparcel properties leased to national or regional operators pursuant primarily to long-term triple-net leases. The Offering is a "blind pool" offering and the Trust does not currently intend to have any of its securities listed or quoted on a public marketplace.

NADG (US) LLLP (the "Manager"), an entity in the North American Development Group ("NADG"), is the promoter of the Trust and will also act as manager of the portfolio. NADG owns interest in over 23 million square feet of existing shopping centre gross leasable area in the U.S. and Canada, with an additional three million feet in development or pre-development. NADG also owns interests in approximately 1,600 acres of land in the U.S. and Canada that has been acquired for future development. Over the past five years, NADG has acquired over 45 retail properties comprising over six million square feet of existing or to be developed space. Properties owned or under administration by NADG have an enterprise value of approximately U.S.$4.0 billion.

The syndicate of agents for the Offering was led by CIBC and included GMP Securities L.P., Raymond James Ltd., National Bank Financial Inc., Scotiabank, Canaccord Genuity Corp., Echelon Wealth Partners Inc., Industrial Alliance Securities Inc., Mackie Research Capital Corporation and Manulife Securities Incorporated.

Forward-looking Statements

This news release contains statements that include forward-looking information within the meaning of Canadian securities laws. These forward-looking statements reflect the current expectations of the Trust and the Manager regarding future events, including statements concerning the use of proceeds of the Offering and the intention not to list securities on a marketplace. In some cases, forward-looking statements can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.

Material factors and assumptions used by management of the Trust to develop the forward-looking information include, but are not limited to, the Trust's current expectations about: the availability of properties for acquisition and the price at which such properties may be acquired; the availability of mortgage financing; the capital structure of the Trust; the global and North American economic environment; foreign currency exchange rates; and governmental regulations or tax laws. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.

Although management believes the expectations reflected in such forward-looking statements are reasonable and represent the Trust's internal projections, expectations and beliefs at this time, such statements involve known and unknown risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the Trust's control, could cause actual results in future periods to differ materially from current expectations of estimated or anticipated events or results expressed or implied by such forward-looking statements. Such factors include the risks identified in the prospectus, including under the heading "Risk Factors" therein, as well as, among other things, risks related to the availability of suitable properties for purchase by the Trust, the availability of mortgage financing for such properties, and general economic and market factors, including interest rates, prospective purchasers of real estate, business competition, changes in government regulations or income tax laws. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the Trust undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

SOURCE NADG NNN Real Estate Investment Trust

Randall Starr, President and Chief Executive Officer, NADG NNN Real Estate Investment Trust, 646-660-4101, [email protected]; Jan Gütter, Chief Financial Officer, NADG NNN Real Estate Investment Trust, 905-477-9200, [email protected]