Melcor Real Estate Investment Trust Completes $83 Million Initial Public Offering

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES.


Melcor Developments Ltd. (TSX:MRD) and Melcor Real Estate Investment Trust (the
"REIT") (TSX:MR.UN) announced today that the REIT has completed its initial
public offering of 8,300,000 trust units at a price of $10.00 per trust unit.
The offering raised gross proceeds of approximately $83,000,000 and was
underwritten by a syndicate of underwriters co-led by RBC Capital Markets and
CIBC, and including BMO Nesbitt Burns Inc., TD Securities Inc., Desjardins
Securities Inc., National Bank Financial Inc., Scotia Capital Inc., Canaccord
Genuity Corp. and Laurentian Bank Securities Inc. RBC Capital Markets and CIBC
were the bookrunners on the transaction.


Melcor Developments Ltd. and the REIT have granted the underwriters an
over-allotment option, exercisable for a period of 30 days following the
closing, to purchase up to an additional 830,000 trust units at a price of
$10.00 per trust unit which, if exercised in full, will increase the total gross
proceeds of the offering to Melcor and the REIT to approximately $91,300,000.


"We are very pleased to conclude this process and launch Melcor REIT to grow our
income-producing assets portfolio for the benefit of Melcor and new trust
unitholders," commented Ralph B. Young, CEO of the REIT's promoter and manager,
Melcor Developments Ltd. and a trustee of the REIT. "With a strong relationship
with Melcor Developments and access to its significant development pipeline, we
are confident that both companies will continue to grow our already proven and
established western Canadian real estate presence."


"We were very pleased with investor interest in Melcor REIT and are excited to
get to work growing our portfolio and building value for our investors," added
Darin Rayburn, CEO of the REIT.


The trust units will commence trading today on the Toronto Stock Exchange under
the symbol "MR.UN".


The REIT initially intends to make monthly cash distributions to its unitholders
at a rate of $0.05625 per trust unit, which are initially expected to provide an
annual yield of 6.75%. The first cash distribution, which will be for the period
from the date of closing of the offering to May 31, 2013, is expected to be paid
on or about June 14, 2013 to unitholders of record on May 31, 2013, in an amount
estimated to be $0.05625 per unit.


Melcor Developments Ltd. (collectively, with its affiliates, "Melcor") has
retained an approximate 55.5% effective interest in the REIT (or an approximate
51.1% effective interest if the over-allotment option is exercised in full).


The trust units have not been, nor will they be, registered under the United
States Securities Act of 1993, 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
trust units in the United States or to, or for the account or benefit of, U.S.
Persons.


About Melcor Real Estate Investment Trust

Melcor Real Estate Investment Trust is an unincorporated, open-ended real estate
investment trust established pursuant to a declaration of trust under the laws
of the Province of Alberta. The REIT has been created for the purpose of
acquiring and owning income producing properties located in Western Canada,
comprised primarily of retail, office and industrial properties. Concurrent with
the completion of the initial public offering of trust units, the REIT
indirectly acquired, through a limited partnership, interests in a portfolio of
27 income producing properties located in the Edmonton, Alberta region; the
Calgary, Alberta region; Lethbridge, Alberta; Regina, Saskatchewan; and Kelowna,
British Columbia, with approximately 1.57 million owned square feet of gross
leasable area.


About Melcor Developments Ltd.

Melcor is a diversified real estate development and management company with a
rich heritage of integrity and innovation in real estate since 1923.


Through four integrated operating divisions, Melcor develops and manages
mixed-use residential communities, business and industrial parks, office
buildings, retail commercial centres and golf courses.


Melcor's headquarters are located in Edmonton, Alberta, with regional offices
throughout Alberta and British Columbia. Company developments span Western
Canada and the US. Melcor has been a public company since 1968 and trades on the
Toronto Stock Exchange (TSX:MRD).


Forward-Looking Statements

This press release may contain forward-looking information within the meaning of
applicable securities legislation, which reflects Melcor's and the REIT's
current expectations regarding future events. Forward- looking information is
based on a number of assumptions and is subject to a number of risks and
uncertainties, many of which are beyond Melcor's or the REIT's control, that
could cause actual results and events to differ materially from those that are
disclosed in or implied by such forward-looking information. Such risks and
uncertainties include, but are not limited to, the factors discussed under "Risk
Factors" in the final prospectus of the REIT dated April 19th, 2013. Neither
Melcor nor the REIT undertake any obligation to update such forward-looking
information, whether as a result of new information, future events or otherwise,
except as expressly required by applicable law.


For more information, visit the REIT's website at www.melcorREIT.ca and the
REIT's and Melcor's respective issuer profiles at www.sedar.com.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Melcor Developments Ltd.- President & COO
Melcor Real Estate Investment Trust- Trustee
Brian Baker
780-423-6931


Melcor Developments Ltd.- CFO
Melcor Real Estate Investment Trust- CFO
Jonathan Chia, CA
780-423-6931


Melcor Developments Ltd.- Executive Vice-President
Melcor Real Estate Investment Trust- CEO
Darin Rayburn
780-423-6931
www.melcorREIT.ca
Melcor Developments (TSX:MRD)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024