Edgefront REIT announces closing of $19.25 million offering

/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION THROUGH UNITED STATES NEWS OR WIRE SERVICES/

CALGARY, July 15, 2014 /CNW/ - Edgefront Real Estate Investment Trust (the "REIT") (TSXV: ED.UN) announced today the closing of its previously announced $19,250,000 public offering consisting of a treasury offering of 8,750,000 Units, at a price of $2.00 per Unit, for gross proceeds of $17,500,000 and a secondary offering by way of the exercise in full of the over-allotment option for 875,000 Units for gross proceeds of $1,750,000.

"We are extremely pleased that in a difficult market for small cap REITs, our business story has resonated with the investing public to enable us to successfully complete our offering and acquire the three properties.  This strong show of support further emphasizes Edgefront's unique business strategy and bodes well for our investors in the future", commented Kelly Hanczyk, the REIT's Chief Executive Officer.

The offering was conducted through a syndicate of underwriters led by Dundee Securities Ltd. and Scotia Capital Inc. and including National Bank Financial Inc., TD Securities Inc., Desjardins Securities Inc. and GMP Securities L.P. 

The net proceeds of the treasury offering are being used to finance the previously announced acquisition (the "Acquisition") of three income producing industrial properties in Alberta controlled by TriWest Capital Partners through two of its portfolio companies, Triple M Housing Ltd. and Northern Mat & Bridge Limited Partnership, which is expected to close later today.  The remainder of the purchase price for the Acquisition is being satisfied by cash on hand and cash to be received in respect of a draw down on the REIT's credit facility.

The Units sold pursuant to the offering have been listed on the TSX Venture Exchange ("TSXV") under the REIT's existing trading symbol ED.UN. The REIT now has 28,217,362 units issued and outstanding. Additionally, there are 360,000 Class B LP units of Edgefront Limited Partnership issued and outstanding.

About the REIT

Edgefront REIT is a growth oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of industrial properties located in primary and secondary markets in North America, with an initial focus on Western Canada. Edgefront REIT currently owns a portfolio of 12 properties comprising approximately 470,000 square feet of rentable area.

The TSXV has neither approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the completion of the Acquisition. Although the REIT believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct.

Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The REIT cautions investors that any forward-looking information provided by the REIT is not a guarantee of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: the REIT's ability to complete the Acquisition; the state of the real estate sector in the event the Acquisition is completed; the REIT's ability to secure the necessary financing or to be fully able to implement its business strategies and other risks and factors that the REIT is unaware of at this time. The reader is referred to the REIT's short form prospectus for a more complete discussion of risk factors relating to the REIT and their potential effects, available on SEDAR at www.sedar.com.

The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. State securities laws and may not be offered, sold, or delivered directly or indirectly, within the United States or its territories or possessions or to or for the account of any U.S. person (as defined in Regulation S under the U.S. Securities Act) other than pursuant to an available exemption from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any such securities within the United States, or its territories or possessions, or to or for the account of any U.S. person.

SOURCE: Edgefront Real Estate Investment Trust

Please contact Kelly C. Hanczyk, President and CEO at [phone] or Rob Chiasson, CFO at [phone].