Milestone Apartments REIT Announces Successful Closing of Bought Deal Financing and Exercise in Full of Over-Allotment Option for Gross Proceeds of C$69.1 Million

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

TORONTO AND DALLAS, April 11, 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 ("Units") with a syndicate of underwriters, co-led by BMO Capital Markets and CIBC, on a bought deal basis. BMO Capital Markets was the sole bookrunner on the transaction.  A total of 6,647,000 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$10.40 per Unit for total gross proceeds of C$69,128,800.

The REIT intends to use approximately US$46.5 million of the net proceeds from the offering to repay in full the REIT's existing credit facility, which is primarily used for acquisitions to grow the REIT's portfolio. The remainder of the net proceeds of the offering will be used for future acquisitions and general business purposes.

The Units were offered in Canada pursuant to a short form prospectus filed with the securities commissions and other similar regulatory authorities in all of the provinces and territories of Canada. A copy of the short form prospectus is available under the REIT's profile on the SEDAR website at www.sedar.com.

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 US$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. 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 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