/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES/
VANCOUVER, Aug. 22 /CNW/ - Pure Industrial Real Estate Trust ("PIRET")
announced today that it has completed its previously announced $19,000,000
initial public offering (the "Offering"). Pursuant to the Offering, PIRET sold
4,750,000 trust units at a price of $4.00 per trust unit for total gross
proceeds of $19 million. In conjunction with the Offering, an affiliate of
Sunstone Industrial Advisors Inc. ("Sunstone Management"), the asset manager
of PIRET, also purchased 250,000 subordinated units for additional gross
proceeds of $1 million, for aggregate gross proceeds to PIRET of $20,000,000.
The trust units were offered through a syndicate of agents led by Dundee
Securities Corporation and RBC Capital Markets, and including BMO Capital
Markets Inc., Raymond James Ltd., Blackmont Capital Inc., Bieber Securities
Inc., Desjardins Securities Inc., MGI Securities Inc. and Sora Group Wealth
Advisors Inc. (the "Agents").
PIRET has also granted the Agents an over-allotment option to purchase up
to an additional 712,500 trust units for a period of up to 30 days after
closing of the Offering. To the extent additional trust units are issued
pursuant to the over-allotment option, Sunstone Management has agreed to
subscribe for its pro rata share of additional subordinated units. If the
over-allotment option is exercised in full, the total gross proceeds to PIRET
will increase to $23,000,000.
PIRET has received conditional approval to list the trust units on the
TSX Venture Exchange ("TSX-V") under the symbol "AAR.UN". Subject to the
TSX-V's bulletin announcing trading, PIRET expects the trust units will begin
trading on the TSX-V on Friday, August 24, 2007.
PIRET is an unincorporated, open-ended investment trust established for
the purposes of acquiring, owning and operating a diversified portfolio of
income-producing industrial properties in both primary and secondary markets
across Canada. PIRET will focus exclusively on investing in industrial
properties and will be the only publicly traded vehicle in Canada that offers
investors exclusive exposure to Canada's industrial asset class.
The net proceeds from the issuance of the trust and subordinated units
will be used primarily to acquire a portfolio of 10 single-tenant industrial
properties (the "Initial Portfolio") located in British Columbia, Alberta,
Manitoba, Ontario and Quebec. A portion of the proceeds will also used to pay
the costs related to the purchase of the Initial Portfolio and the expenses of
the Offering. Any additional proceeds will be used to acquire additional
industrial properties and for general corporate purposes.
Sunstone Management, as the asset manager of PIRET, gives PIRET access to
Sunstone Management's experienced management team and its extensive network of
relationships in the Canadian industrial real estate market. Sunstone
Management is affiliated with Sunstone Realty Advisors Inc. and is controlled
by Darren Latoski and Steve Evans.
This news release is intended for distribution in Canada only and is not
intended for distribution to United States newswire services or dissemination
in the United States. The securities being offered have not, nor will they be
registered under the United States Securities Act of 1933, as amended, and may
not be offered or sold within the United States or to, or for the account or
benefit of, U.S. persons absent U.S. registration or an applicable exemption
from the U.S. registration requirements. This release does not constitute an
offer for sale of securities in the United States.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Darren Latoski, Acting CEO and Trustee
For further information:
For further information: Additional information about PIRET is available
at www.sedar.com or please contact Darren Latoski at (604) 681-5959