Dundee International REIT completes $253 million equity offering

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

TORONTO, March 5, 2013 /CNW/ - DUNDEE INTERNATIONAL REIT (DI.UN - TSX) today announced the closing of its previously announced equity offering of units of Dundee International REIT ("Units") at a price of $10.90 per Unit. The syndicate of underwriters, led by TD Securities Inc., elected to exercise its over-allotment option in full, resulting in the issuance of 23,230,000 Units for total gross proceeds of $253.2 million.

Dundee International REIT will use the net proceeds from the offering to partially fund the previously announced acquisition of a 1.5 million square foot portfolio of office properties in Germany (the "Portfolio") from investment funds managed by SEB Asset Management and for general trust purposes.

Dundee International REIT intends on closing groups of properties in stages throughout March 2013, subject to the satisfaction or waiver of closing conditions. The REIT has obtained competition clearance from the German Federal Cartel Office and formal waivers of municipal pre-emptive rights from all but two cities. Dundee International REIT has secured $275.4 million (€205.6 million) of new mortgage financing for the Portfolio from three lenders at an average interest rate of 2.34% and an average term to maturity of 6.0 years. In addition, the REIT is in the process of finalizing the loan documentation with one additional lender for $68.9 million (€51.4 million) of new mortgage financing at an interest rate equal to 160 basis points over the applicable 6-month Euribor swap rate and a term to maturity of 10 years.

This press release is not an offer of securities for sale in the United States.  The units being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly are not being offered for sale and may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except pursuant to an exemption from the registration requirements of that Act.

Dundee International REIT is an unincorporated, open-ended real estate investment trust that provides investors with the opportunity to invest in commercial real estate exclusively outside of Canada. Dundee International REIT's portfolio currently consists of approximately 13.7 million square feet of gross leasable area of office, industrial and mixed use properties across Germany. For more information, please visit www.dundeeinternational.com.

This press release contains forward-looking statements with respect to Dundee International REIT and its operations, strategy, financial performance and financial condition, as well as with respect to the acquisition of the Portfolio. These statements generally can be identified by the use of forward-looking words such as "forecast", "may", "will", "would", "expect", "estimate", "anticipate", "intend", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of Dundee International REIT and the Portfolio discussed herein could differ materially from those expressed or implied by such statements. See the risk factors in the public filings of Dundee International REIT. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Some important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, the failure to receive any required approvals or consents in connection with the acquisition of the Portfolio or the failure to satisfy or waive any other condition to the acquisition of the Portfolio, the failure of Dundee International REIT to realize expected benefits from the acquisition of the Portfolio, the performance of the Portfolio generally, changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward-looking statements attributable to Dundee International REIT and persons acting on its behalf. The assumptions made in making forward-looking statements are referred to in the public filings of Dundee International REIT. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. Except as required by applicable law, Dundee International REIT specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Additional information about these assumptions and risks and uncertainties is contained in Dundee International REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at Dundee International REIT's website at www.dundeeinternational.com.

SOURCE: Dundee International REIT

Michael J. Cooper
Vice Chairman
[phone]
[email protected]

P. Jane Gavan
President and Chief Executive Officer
[phone]
[email protected]

Rene D. Gulliver
Chief Financial Officer
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[email protected]