Inovalis Real Estate Investment Trust announces closing of Cdn$37 million equity offering

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

TORONTO, Nov. 6, 2014 /CNW/ -Inovalis Real Estate Investment Trust ("Inovalis REIT" or the "REIT") (TSX: INO.UN) today announced the closing of its previously announced public offering (the "Offering") of 3,978,500 trust units ("Units"), on a bought deal basis, at a price of Cdn$9.30 per Unit for total gross proceeds of approximately Cdn$37 million. The Offering was conducted through a syndicate of underwriters co-led by Desjardins Capital Markets Inc., GMP Securities L.P. and National Bank Financial Inc. and including BMO Capital Markets, Dundee Securities Limited, Laurentian Bank Securities Inc., Manulife Securities Incorporated, Burgeonvest Bick Securities Limited, Mackie Research Capital Corporation, All Group Financial Services Inc. and M Partners Inc.

The REIT intends to use the net proceeds from the Offering to fund, in part, as to Cdn$16,550,000, the cash portion of the purchase price of the acquisition of two office properties located in the Greater Paris Region (the "Acquisition"), as to €12.5 million to fund the loan to Inovalis S.A. for purposes of acquiring the Metropolitan Property (the "Acquisition Loan"), and the balance for future acquisitions and general trust purposes.

The REIT has granted the underwriters an option to purchase up to an additional 596,775 Units at a price of $9.30 per Unit, exercisable in whole or in part at any time on the same terms up to 30 days from today.

The REIT's Units are listed on the Toronto Stock Exchange under the symbol INO.UN. 

Forward-Looking Information:

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 Acquisitions, the Acquisition Loan and the Offering. 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 the REIT 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 one or more of the Acquisitions or the Acquisition Loan or the failure to satisfy or waive any other condition to one or more of the Acquisitions or the Acquisition Loan or otherwise close the Acquisition or the Acquisition Loan, the failure of the REIT to realize expected benefits from the acquisition of one or both of the properties or the Acquisition Loan, the performance of the properties 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 Acquisitions and the Acquisition Loan 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.inovalisreit.com.

About Inovalis Real Estate Investment Trust

Inovalis Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning office properties primarily located in France and Germany but also opportunistically in other European countries where assets meet the REIT's investment criteria. The REIT currently owns an interest in five office properties in France and Germany, comprising approximately 747,000 square feet of gross leasable area.

SOURCE: Inovalis Real Estate Investment Trust

David Giraud, Chief Executive Officer, Inovalis Real Estate Investment Trust, Tel: [phone], [email protected]; Antoine Tronquoy, Chief Financial Officer, Inovalis Real Estate Investment Trust, Tel: [phone], [email protected]