TORONTO, Feb. 28 /CNW/ - Middlefield Group, on behalf of REIT INDEXPLUS Income Fund ("REIT INDEXPLUS" or the "Fund"), is pleased to announce that it has
filed a preliminary prospectus in relation to an initial public
offering of units at a price of $12.00 per unit.
REIT INDEXPLUS Income Fund has been designed to provide investors with low-cost exposure to the real estate sector through a combination of
indexing and active portfolio management. At least 50% and up to 80% of the Fund's assets will be invested in a
diversified portfolio of securities which is designed to track, to the
extent practicable, the S&P®/TSX™ Capped REIT Index. The remainder of
the Fund's assets will be invested in an actively managed diversified
portfolio of issuers operating primarily in the Canadian real estate
sector, including the securities of REITs and other real estate issuers
not in the Index as well as the securities of global REITs and real
estate companies. Middlefield Capital Corporation will act as the
investment advisor to the Fund.
The Fund's investment objectives are to:
(i) provide holders of units with stable monthly cash distributions; and
(ii) outperform the S&P®/TSX™ Capped REIT Index on a total return basis.
Based on current estimates, the initial target distribution yield for
the Fund is expected to be 6.5% per annum based on the original
subscription price (or $0.065 per unit per month or $0.78 per unit per
Prospective purchasers investing in REIT INDEXPLUS will have the option
of paying for units in cash or by exchanging securities of issuers
listed in the preliminary prospectus. Prospective purchasers under the
exchange option will be required to deposit their exchange eligible
securities prior to 5:00 p.m. (Toronto time) on March 24, 2011 in the
manner described in the preliminary prospectus.
The syndicate of agents is being co-led by CIBC World Markets Inc. and
RBC Capital Markets and includes Scotia Capital Inc., TD Securities
Inc., BMO Capital Markets, National Bank Financial Inc., HSBC
Securities (Canada) Inc., Canaccord Genuity Corp., GMP Securities L.P.,
Macquarie Private Wealth Inc., Raymond James Ltd, Middlefield Capital
Corporation, Dundee Securities Ltd., Mackie Research Capital
Corporation and Wellington West Capital Markets Inc.
Standard & Poor's ("S&P") and the Toronto Stock Exchange ("TSX") have
not sponsored, endorsed, sold or promoted the units or the Fund and
neither S&P nor the TSX make any representation regarding the
advisability of investing in units of the Fund. S&P has no relationship
to the Fund, but the manager of the Fund (or an affiliate thereof)
intends prior to closing of this offering to enter into an agreement
with S&P relating to the licensing by the Fund of certain trademarks
and trade names of S&P and the TSX.
A preliminary prospectus containing important information relating to
these securities has been filed with securities commissions or similar
authorities in certain jurisdictions of Canada. The preliminary
prospectus is still subject to completion or amendment. Copies of the
preliminary prospectus may be obtained from any of the agents named
above. There will not be any sale or acceptance of an offer to buy the
securities until a receipt for the final prospectus has been issued.
SOURCE REIT INDEXPLUS Income Fund
For further information:
please visit our website atwww.middlefield.comor contact Nancy Tham, Managing Director, Sales and Marketing, at 416.847.5349 or at 1.888.890.1868