/NOT FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, June 10, 2015 /CNW/ - Slate Office REIT (the
"REIT") (TSX: SOT.UN) (TSX: SOT.WT) today announced that it has
closed its previously announced offering (the "Offering") of
10,820,000 subscription receipts (the "Subscription Receipts") of
the REIT at a price of $7.40 per
Subscription Receipt for gross proceeds of $80,068,000. The Offering was completed on a
bought deal basis through a syndicate of underwriters bookrun by TD
Securities Inc. and BMO Capital Markets. The Subscription
Receipts will commence trading on the Toronto Stock Exchange today
under the ticker symbol SOT.R.
The REIT intends to use the net proceeds from the sale of the
Subscription Receipts to finance, in part, the purchase price for
the REIT's previously announced acquisition of a portfolio of 14
commercial properties from Fortis Properties Corporation (the
"Acquisition").
On closing of the Acquisition: (i) one unit of the REIT (a
"Unit") will be automatically issued in exchange for each
Subscription Receipt (subject to customary anti-dilution
protection), without payment of additional consideration or further
action by the holder thereof, (ii) an amount per Subscription
Receipt equal to the amount per Unit of any cash distributions made
by the REIT for which record dates have occurred during the period
that the Subscription Receipts are outstanding, net of any
applicable withholding taxes, will become payable in respect of
each Subscription Receipt, and (iii) the net proceeds from the sale
of the Subscription Receipts will be released from escrow to the
REIT.
If the Acquisition fails to close as described above
by September 30, 2015, or the Acquisition is terminated at an
earlier time, the gross proceeds of the Offering and pro rata
entitlement to interest earned or deemed to be earned on the
Subscription Receipts, net of any applicable withholding taxes,
will be paid to holders of the Subscription Receipts and the
Subscription Receipts will be cancelled. The Acquisition is
expected to close late in the second quarter or early in the third
quarter.
Forward-Looking Statements
Certain information herein constitutes "forward-looking
statements" within the meaning of applicable securities
legislation. Forward-looking statements include statements about
management's expectations regarding objectives, plans, goals,
strategies, future growth, operating results and performance,
business prospects and opportunities of the REIT. Forward-looking
statements can be identified by the use of forward-looking
terminology such as "believes", "expects", "may", "might",
"should", "seeks", "intends", "plans", "pro- forma", "estimates" or
"anticipates"; or variations of such words and phrases or
statements that certain actions, events or results "may", "could"
or "might" occur or be achieved; or the negative connotation
thereof. Forward-looking statements are made based on reasonable
assumptions, however, there is no assurance that the events or
circumstances reflected in forward-looking statements will occur or
be achieved. Forward-looking statements are based on numerous
assumptions of factors that if untrue, could cause actual results
to differ materially from those that are implied by such
forward-looking statements. These factors include but are not
limited to: general and local economic and real estate business
conditions; the financial condition of tenants; occupancy rates;
rental rates; the ability of the REIT to refinance maturing debt;
the REIT's ability to source and complete accretive acquisitions;
changes in government, environmental and tax regulations; inflation
and interest rate fluctuations; the REIT's ability to obtain equity
or debt financing for additional funding requirements; and adequacy
of insurance.
Forward-looking statements are subject to risks and
uncertainties, many of which are beyond the REIT's control. These
risks and uncertainties include, but are not limited to: risks
related to general and local financial conditions including
available equity and debt financing at reasonable costs and
interest rate fluctuations; operational risks including timely
leasing of vacant space and re-leasing of occupied space on
expiration of current leases on terms at current or anticipated
rental rates; tenant defaults and bankruptcies; uncertainties of
acquisition activities including availability of suitable property
acquisitions and integration of acquisitions; competition including
development of properties in close proximity to the REIT's
properties; loss of key management and employees; governmental,
environmental, taxation and other regulatory risks; litigation
risks and other risks and factors described from time to time in
the documents filed by the REIT with the securities regulators.
The REIT has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward- looking statements. However, there may be other factors
that could cause results to not be as anticipated, estimated or
intended. Forward-looking statements are provided to inform readers
about management's current expectations and plans and allow
investors and others to better understand the REIT's operating
environment. However, readers should not place undue reliance on
forward-looking statements, as forward-looking statements involve
significant risks and uncertainties and should not be read as
guarantees of future performance or results, or of the timing that
such performance or results will be achieved. Additional
information about risks and uncertainties is contained in the
REIT's annual information form for the year ended December 31, 2014 available on SEDAR at
www.sedar.com.
About Slate Office REIT
Slate Office REIT is an open-ended real estate investment trust
listed on the Toronto Stock Exchange as "SOT.UN". The REIT's
portfolio comprises strategic and well-located real estate assets
located primarily across Canada's
major population centres. The REIT will concentrate future growth
on strategic acquisitions of high quality downtown and suburban
office properties. The REIT is also focused on maximizing value
through internal organic rental and occupancy growth. More
information is available at www.slateofficereit.com.
About Slate
Slate Asset Management L.P. is a leading real estate investment
platform with over $2.5 billion in
assets under management. Slate is a value-oriented company and a
significant sponsor of all its private and publicly-traded
investment vehicles, which are tailored to the unique goals and
objectives of its investors. The firm's careful and selective
investment approach creates long term value with an emphasis on
capital preservation and outsized returns. Slate is supported by
exceptional people, flexible capital and a proven ability to
originate and execute on a wide range of compelling investment
opportunities. More information is available at
www.slateam.com.
SOURCE Slate Office REIT