FAM Real Estate Investment Trust Announces Closing of $24.7 Million Equity Financing

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

CALGARY, May 13, 2014 /CNW/ - FAM Real Estate Investment Trust (TSX: F.UN) (TSX: F.WT) (the "REIT") today announced the closing of its previously announced public offering (the "Offering") of 1,955,000 trust units ("Units"), inclusive of 255,000 Units issued pursuant to the full exercise of the over-allotment option, on a bought deal basis, at a price of $8.85 per Unit for total gross proceeds of $17,301,750.  The Offering was conducted through a syndicate of underwriters led by TD Securities Inc., also including Canaccord Genuity Corp., CIBC, RBC Capital Markets., Desjardins Securities Inc., Euro Pacific Canada Inc. and National Bank Financial Inc.

Concurrent with the closing of the Offering, the REIT issued 831,639 Units on a private placement basis (the "Concurrent Private Placement") to Huntingdon Capital Corp. (TSX:HNT) (TSX:HNT.DB) (TSX:HNT.WT) ("Huntingdon"), the manager of the REIT, at a purchase price of $8.85 per Unit for gross proceeds of $7,360,005.15.  Following closing of the Offering and the Concurrent Private Placement, Huntingdon will hold an approximate 29.8% interest in the REIT.

The proceeds from the Offering and the Private Placement will be used to (i) fund the remaining portion of its investment in a fully pre-leased 64,000 square foot data centre development in Winnipeg, Manitoba (the "MTS Data Centre") including the $3.5 million outstanding portion of the $6.5 million mezzanine loan to the REIT's 50% partner in the MTS Data Centre, (ii) to fully repay amounts drawn on the REIT's revolving credit facility, and (iii) for general trust purposes.

About FAM Real Estate Investment Trust

The REIT is a diversified commercial real estate investment trust focused on owning and acquiring strategically well-located office, industrial and retail real estate located primarily across Canada's large population centres.

Forward-Looking Information and Cautionary Statements:

This press release contains forward-looking statements with respect to the REIT and its operations, strategy, financial performance and financial condition, as well as with respect to the MTS Data Centre transaction. 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. Some of the specific forward-looking statements in this press release include, but are not limited to, statements with respect to the closing of the transactions contemplated herein and the effect of the transactions contemplated herein on the financial performance of the REIT. The actual results and performance of the REIT and the properties discussed herein could differ materially from those expressed or implied by such statements. See the risk factors in the public filings of the 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 MTS Data Centre transaction or the failure to satisfy or waive any other condition to the MTS Data Centre transaction, the failure of the REIT to realize expected benefits from the MTS Data Centre transaction, the failure of the REIT to satisfy the conditions of the Offering or otherwise close the Offering, the performance of the MTS Data Centre transaction generally, and changes in securities or other laws or regulations or the application thereof. The cautionary statements qualify all forward-looking statements attributable to the REIT and persons acting on its behalf. The assumptions made in making forward-looking statements are referred to in the public filings of the REIT. The assumptions made in making forward-looking statements in this press release also include the assumption that the REIT will be in a position to satisfy the conditions in respect of the MTS Data Centre transaction and the Offering and complete those transactions.

Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. Except as required by applicable law, the 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 the REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available at the REIT's website at www.famreit.com.

SOURCE: FAM Real Estate Investment Trust

Shant Poladian, Chief Executive Officer
FAM Real Estate Investment Trust
Telephone: [phone]
Email: [email protected]