Inovalis Real Estate Investment Trust Files Final Prospectus for Initial Public Offering

/NOT FOR DISSEMINATION IN THE UNITED STATES./

TORONTO, April 3, 2013 /CNW/ - Inovalis Real Estate Investment Trust (the "REIT") announced today that it has filed, and obtained a receipt for, a final prospectus for its initial public offering of 10,500,000 trust units (the "Offering") with the securities commissions of all provinces in Canada. The trust units will be issued at a price of $10.00 per unit. Gross proceeds of the Offering are expected to be $105 million. The REIT has granted to the underwriters of the Offering an option to purchase up to an additional 1,575,000 trust units at a price of $10.00 per trust unit for a period of 30 days after closing of the Offering and, if exercised in full, will increase the total gross proceeds of the Offering to $120.75 million.

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 Toronto Stock Exchange (the "TSX") has conditionally approved the listing of the trust units under the symbol "INO.UN", subject to fulfilling all of the requirements of the TSX.

The Offering is expected to close on or about April 10, 2013. On closing of the Offering, it is expected that Inovalis S.A. ("Inovalis") will indirectly hold an approximate 10.0% interest in the REIT (on a fully exchanged basis) through the ownership of Exchangeable Securities of a subsidiary of the REIT, which 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 estimated amount of $0.11688 per trust unit assuming closing occurs on April 10, 2013. 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.

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.

Copies of the final prospectus will be available on SEDAR at www.sedar.com.  Capitalized terms used but not defined above, have the meanings given to them in the Final Prospectus.

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 of America.

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. Actual results could differ materially from those projected herein. The REIT disclaims any obligation to update these forward-looking statements.

SOURCE: Inovalis Real Estate Investment Trust

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