BSR Real Estate Investment Trust Announces Successful Closing of US$40.25 Million Bought Deal Equity Financing and US$15 Million Private Placement

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

LITTLE ROCK, AR and TORONTO, Sept. 17, 2019 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") (TSX:HOM.U and HOM.UN) announced today that it has completed its previously announced offering of trust units of the REIT ("Units") with a syndicate of underwriters led by BMO Capital Markets on a bought deal basis. A total of 3,797,300 Units were issued at a price of US$10.60 per Unit (the "Offering Price") for total gross proceeds of US$40,251,380 (the "Public Offering"), which includes the proceeds from the full exercise of an over-allotment option granted to the underwriters to purchase 495,300 Units.

Concurrently with the closing of the Public Offering, the REIT has also completed its previously announced non-brokered private placement of 1,416,000 Units to Vision Capital Corporation on behalf of investment funds that it manages at the Offering Price, for gross proceeds of approximately US$15 million (the "Private Placement", and together with the Public Offering, the "Financing").

The REIT intends to use the net proceeds from the Financing to fund a portion of the purchase price for the previously announced acquisitions of Cielo and Madrone, two adjacent Class A garden style apartment communities located in Austin, Texas. The balance of the purchase price was funded with cash on hand and the REIT's credit facility. The REIT may subsequently place new mortgage financing on the properties.

The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the "1933 Act") 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 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Units in the United States or to, or for the account or benefit of, U.S. persons.

ABOUT BSR REAL ESTATE INVESTMENT TRUST

BSR Real Estate Investment Trust is an internally managed, unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT owns a portfolio of 47 multifamily garden-style residential properties aggregating 10,268 apartment units located across five bordering states in the Sunbelt region of the United States.

Additional information about the REIT is available at www.bsrreit.com or www.sedar.com.

ABOUT VISION CAPITAL CORPORATION

Vision Capital Corporation, a registrant under applicable securities laws, manages the Vision Opportunity Funds, which are private equity funds and liquid alternative mutual funds focused on publicly-traded real estate securities.

For more information, please visit www.visioncap.ca 

Forward-Looking Information

This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT and the environment in which it operates, and including statements about the Financing and the proposed use of proceeds thereof. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. The forward-looking statements in this news release are based on certain assumptions, including assumptions regarding the proposed use of proceeds of the Financing and the REIT's growth strategy. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the short form prospectus dated September 10, 2019 relating to the Public Offering and in the REIT's Annual Information Form for the year ended December 31, 2018, dated March 7, 2019, each of which is available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE BSR Real Estate Investment Trust

Susan Koehn, Chief Financial Officer, BSR Real Estate Investment Trust, Tel: [phone], Fax: [phone]

Related Links

www.bsrtrust.com