Edgefront REIT to Acquire Calgary Property for $22 Million

Completes Previously Announced Barrie Acquisition

CALGARY, July 20, 2015 /CNW/ - Edgefront Real Estate Investment Trust (the "REIT") (TSXV: ED.UN) is pleased to announce that it has entered into an agreement to acquire an industrial property located in Calgary, Alberta (the "Property"), for a purchase price (excluding closing costs) of approximately $22 million to be satisfied by (i) the issuance to the unrelated vendor of approximately $2.0 million of REIT units at an issue price of $1.90 per unit (which represents a premium to the current market price of the REIT units as traded on the TSX Venture Exchange ("TSXV")), (ii) the assumption of approximately $11.5 million principal amount of an existing mortgage on the Property with an annual interest rate of 3.5% (a credit will be received from the vendor on closing equivalent to a 5 year interest rate buy down to 3.25%), and a maturity date of August 1, 2022, and (iii) $8.5 million in cash to be funded from available cash including proceeds of new mortgage financings on recently announced acquisitions.

The principal tenant of the Property is Canada Cartage with a lease term of approximately 9 years. The acquisition remains subject to customary closing conditions, including TSXV and other necessary regulatory approvals.

The REIT also wishes to provide an update on its previously announced acquisition of two industrial properties located in Barrie, Ontario (the "Barrie Property") and Kelowna, British Columbia (the "Kelowna Property"). The REIT completed the acquisition of the Barrie Property on July 17, 2015 for a purchase price of $8.5 million through the issuance of 1,000,000 REIT Units and 3,470,985 LP Units of a subsidiary limited partnership of the REIT, at an issue price of $1.90 per unit. In respect of the REIT's acquisition of the Kelowna Property, the REIT has obtained TSXV approval and expects to close the acquisition in early August. The Kelowna property will be purchased for $7.5 million, with the purchase price to be satisfied through the issuance of 2,000,000 REIT Units at $1.90 per unit and from available cash.  

"We are pleased to announce the acquisition of 4700 102 Avenue S.E., an institutional quality asset with a national tenant. With an attractive 7.6% going in cap rate, yearly rental rate increases, a 9 year lease term and 7 year debt, the asset fits nicely within the REIT's current portfolio. With the completion of this transaction, plus the two previously announced deals, we will have successfully grown the REIT's asset value by approximately $38 million to over $150 million and market cap by $14.3 million without the need to raise equity in the public markets. This has been a successful summer for the REIT and we look forward to continued growth in the near future." stated Kelly Hanczyk, the REIT's Chief Executive Officer.

The following table provides additional information for the Property:

Property Address	Property Use	Year Built and/or Renovated	Purchase Price	Equity Vendor Takeback ($/# Units)	Rentable Area (GLA)	Occupancy	Lease Term
4700 - 102 Avenue S.E. Calgary, AB	Cross Dock	2009	$22 million	$2 million / 1,052,632 units	29,471	100%	9 yrs

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. The REIT currently owns a portfolio of 15 properties comprising approximately 828,000 square feet of rentable area.

The REIT has approximately 30,744,938 units issued and outstanding. Additionally, there are 3,830,985 Class B LP units of subsidiary limited partnerships of the REIT issued and outstanding.

Forward Looking Statements

Certain statements contained in this new release constitute forward-looking statements which reflect the REIT's current expectations and projections about future results. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect.

While the REIT anticipates that subsequent events and developments may cause its views to change, the REIT specifically disclaims any obligation to update these forward-looking statements except as required by applicable law. These forward-looking statements should not be relied upon as representing the REIT's views as of any date subsequent to the date of this news release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the REIT.

Non-IFRS Measures

Included in this news release are non-IFRS measures such as Adjusted Funds from Operations (or AFFO) that should not be construed as an alternative to net income / loss, cash from operating activities or other measures of financial performance calculated in accordance with IFRS, and may not be comparable to similar measures as reported by other issuers. Readers are encouraged to refer to the REIT's MD&A for further discussion of the non-IFRS measures presented.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Edgefront Real Estate Investment Trust

Please contact Kelly C. Hanczyk, President and CEO at 416-906-2379; or Rob Chiasson, CFO at [phone]