Milestone Apartments REIT Announces Successful Closing of Bought Deal Equity Offering and Exercise in Full of Over-Allotment Option for Gross Proceeds of C$115.1 Million

-- Reduces MileSouth Ownership Interest in the REIT from 37.9% to 26.9% --

TORONTO and DALLAS, TX, Oct. 16, 2014 /CNW/ - Milestone Apartments REIT (TSX: MST.UN) (the "REIT") announced today that it has completed its previously announced public offering of trust units of the REIT (the "Units") with a syndicate of underwriters co-led by BMO Capital Markets and CIBC, and including RBC Dominion Securities Inc., National Bank Financial Inc., Scotiabank, TD Securities Inc., GMP Securities L.P., Dundee Securities Ltd., Laurentian Bank Securities Inc. and Raymond James Ltd. (collectively, the "Underwriters"), on a bought deal basis. BMO Capital Markets was the sole bookrunner on the transaction. A total of 10,005,000 Units (including Units issued pursuant to the exercise in full of the over-allotment option granted to the underwriters by the REIT) were issued at a price of C$11.50 per Unit for total gross proceeds of C$115,057,500.

The REIT intends to use approximately C$60 million of the proceeds from the offering to fund the equity portions of the respective purchase prices for its recently announced acquisitions of The Village at Legacy Ridge, a multifamily apartment community in Denver, Colorado, and Villas at Shadow Creek, a multifamily apartment community in Houston, Texas. The remaining proceeds were used to redeem class B limited partnership units of Milestone Multifamily Investors LP ("Class B Units") held by MileSouth Apartment Portfolio LP, an affiliated entity of Invesco Ltd. ("MileSouth"). MileSouth now owns approximately 14,000,000 Units and 2,562,981 Class B Units, representing an approximate 26.9% ownership interest in the REIT.

The Units were offered in Canada pursuant to the REIT's base shelf prospectus dated August 27, 2014. The terms of the Offering are described in a prospectus supplement filed with Canadian securities regulators. A copy of the prospectus supplement is available under the REIT's profile on the SEDAR website at www.sedar.com.

The Units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the "1933 Act") and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Units in the United States or to, or for the account or benefit of, U.S. persons.

About Milestone
Milestone is an unincorporated, open-ended real estate investment trust that is governed by the laws of Ontario. The REIT's portfolio consists of 57 multifamily garden-style residential properties, comprising 18,772 units that are located in 12 major metropolitan markets throughout the Southeast and Southwest United States. Milestone is the largest real estate investment trust listed on the TSX focused solely on the United States multifamily sector. The REIT operates its portfolio through its internal property management company, Milestone Management, LLC, which has more than 900 employees across the United States. Based in Dallas, Texas, TMG Partners, L.P., an affiliate of The Milestone Group, LLC, is the external asset manager of the REIT. For more information, please visit www.milestonereit.com.  

About The Milestone Group, LLC
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, Texas and New York, New York 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 US$4.5 billion in multifamily transactions. For more information, please visit www.milestonegp.com.  

Forward-looking information and non-IFRS measures
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", "estimate" and other similar expressions. These statements are based on the REIT's expectations, estimates, forecasts and projections and include, without limitation, statements with respect to the offering and expected use of proceeds thereof. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. 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 factors discussed under the heading "Risk Factors" in the REIT's annual information form available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, 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 any such statement, whether as a result of new information, future events or otherwise.

SOURCE: Milestone Apartments REIT

Robert Debs, Investor Relations, Milestone Apartments REIT, Tel: [phone]; Bruce Wigle, Investor Relations, Bay Street Communications, Tel: [phone]