Milestone Apartments REIT Announces C$60 Million Bought Deal Financing

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TORONTO and DALLAS, March 24, 2014 /CNW/ - Milestone Apartments REIT (TSX: MST.UN) (the "REIT") today announced that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy on a bought deal basis 5,780,000 units (the "Units"), at a price of C$10.40 per Unit for gross proceeds of C$60,112,000 (the "Offering"). The REIT has granted the underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The Offering is expected to close on or about April 11, 2014 and is subject to the REIT receiving all necessary regulatory approvals.

The net proceeds of the Offering will partially be used to repay in full the REIT's existing credit facility, which is primarily used for acquisitions to grow the REIT's portfolio. As of December 31, 2013, a total of US$42.5 million has been drawn from this facility to partially finance the REIT's prior acquisitions. The remainder of the proceeds will be used for future acquisitions and general business purposes.

The Units will be offered by way of a short form prospectus in all of the provinces and territories of Canada and may also be offered by way of private placement in the United States.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Milestone Apartments REIT
Milestone Apartments REIT is an unincorporated, open-ended real estate investment trust that is governed under the laws of Ontario. The REIT's portfolio consists of 54 multifamily garden-style residential properties, comprising 17,648 units that are located in 11 major metropolitan markets throughout the Southeast and Southwest United States. Milestone Apartments REIT is the largest REIT listed on the TSX focused solely on the U.S. multifamily sector. The REIT operates its portfolio through its internal property management company, Milestone Management, with more than 900 employees across the U.S. Based in Dallas, TX, TMG Partners, L.P., an affiliate of The Milestone Group, is the external asset manager of the REIT. For more information, please visit www.milestonereit.com.

About The Milestone Group
The Milestone Group is a privately-held real estate investment management company with expertise and presence in major metropolitan markets throughout the United States. The firm has corporate offices in Dallas, TX and New York, NY with regional acquisition and management offices across the United States. Founded in 2004, The Milestone Group has a strong track record of investing in the U.S. multifamily sector, including completion of more than $4.5 billion in multifamily transactions. For more information, please visit www.milestonegp.com.

Forward-looking information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. Some of the specific forward-looking statements in this news release include, but are not limited to, statements with respect to the Offering and expected use of proceeds thereof. These statements are based on the REIT's expectations and assumptions, including, but not limited to, the REIT's ability to satisfy all conditions of the Offering. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the failure of the REIT to satisfy the conditions of the Offering or otherwise close the Offering, and the factors discussed under the heading "Risk Factors" in the REIT's annual information form available at www.sedar.com. These forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

SOURCE: Milestone Apartments REIT

Robert P. Landin, CEO, Milestone Apartments REIT, Tel: [phone]; Bruce Wigle, Investor Relations, Tel: [phone] x 232