Inovalis Real Estate Investment Trust Completes $105 Million Initial Public Offering

/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

TORONTO, April 10, 2013 /CNW/ - Inovalis Real Estate Investment Trust (the "REIT") announced today that it has completed its initial public offering of trust units, raising gross proceeds of $105,000,000. A total of 10,500,000 trust units were sold at a price of $10.00 per trust unit.

The REIT has granted to the underwriters of the offering an option to purchase up to an additional 15% of the trust units sold at closing of the offering at a price of $10.00 per trust unit for a period of 30 days after closing of the offering, which, if exercised in full, will increase the total gross proceeds of the offering to approximately $120,750,000.

The Offering is being underwritten by a syndicate of underwriters led by Desjardins Securities Inc. and including GMP Securities L.P., Macquarie Capital Markets Canada Ltd., Laurentian Bank Securities Inc., UBS Securities Canada Inc., Manulife Securities Incorporated, Burgeonvest Bick Securities Limited, Industrial Alliance Securities Inc. and Mackie Research Capital Corporation.

The net proceeds will be used by the REIT to indirectly acquire income-producing properties that are currently being managed by Inovalis S.A. ("Inovalis"), with the balance to be used for general trust purposes.

The trust units will commence trading today on the Toronto Stock Exchange under the symbol "INO.UN".

Inovalis will indirectly retain an approximate 12.3% ownership interest in the REIT on a fully exchanged basis (approximately 10% if the over-allotment option is exercised in full) through the ownership of trust units and exchangeable securities of a subsidiary of the REIT, which exchangeable securities are economically equivalent to, and exchangeable for, trust units of the REIT.

The REIT initially intends to make monthly cash distributions of $0.06875 per trust unit to holders of trust units. The first distribution of the REIT will be for the period from closing to May 31, 2013 and will be paid on or about June 17, 2013, in the amount of $0.11688 per trust unit. Declared distributions will be paid on or about the 15th day of each month to unitholders of record at the close of business on the last business day of the immediately preceding month.

These securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of that Act. This news release does not constitute an offer for sale of these securities in the United States.

This press release contains forward-looking statements which reflect the REIT's current expectations regarding future events. The forward-looking statements involve risks and uncertainties, including those set forth in the REIT's final prospectus dated March 28, 2013 under the section "Risk Factors", a copy of which can be obtained at www.sedar.com. Actual results could differ materially from those projected herein. The REIT disclaims any obligation to update these forward-looking statements.

About Inovalis Real Estate Investment Trust

The REIT is a newly established, unincorporated, open-ended real estate investment trust established pursuant to the Declaration of Trust under the laws of the Province of Ontario. On or shortly following closing of the Offering, the REIT will acquire an interest in a portfolio of income-producing office properties that is currently being managed by Inovalis. This portfolio consists of four office properties in France and Germany, comprising 529,267 square feet (49,170 square metres) of gross leasable area. The REIT will engage Inovalis to provide strategic, advisory, asset management, project management, construction management, property management and administrative services necessary to manage our day-to-day operations.

SOURCE: Inovalis Real Estate Investment Trust

David Giraud
Chief Executive Officer
Inovalis Real Estate Investment Trust
[phone]