Pure Industrial Real Estate Trust Announces $91.6 Million of Property Acquisitions and $30.2 Million Equity Financing

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, Aug. 22, 2012 /CNW/ - Pure Industrial Real Estate Trust (TSXV: AAR.UN) ("PIRET") announced today that it has entered into conditional agreements to acquire $91.6 million of income producing properties (collectively, the "Acquisitions"), consisting of 11 industrial properties representing 772,251 square feet of gross leasable area ("GLA") located in Ontario, Alberta and British Columbia. The Acquisitions consist of a portfolio of four buildings located in Kitchener, Burlington and Vaughan, Ontario (collectively, the "Ontario Portfolio"), a portfolio of five buildings located in Calgary, Edmonton and Grande Prairie, Alberta and Richmond, British Columbia (collectively, the "Western Portfolio") and a portfolio of two properties located in Calgary, Alberta (collectively, the "Calgary Properties").  The properties are being acquired at a weighted average going-in capitalization rate of 7.01%.

PIRET also announced today that it has also entered into an agreement to sell to a syndicate of underwriters led by Canaccord Genuity Corp. and Dundee Securities Ltd. (the "Underwriters"), on a bought deal basis, 6,100,000 trust units ("Units") at a price of $4.95 per Unit for gross proceeds to PIRET of approximately $30,195,000 million (the "Financing").  PIRET has also granted the Underwriters an over-allotment option to purchase up to an additional 915,000 Units on the same terms and conditions, exercisable at any time, in whole or in part, up to 30 days after the closing of the Financing. The Financing is expected to close on or about September 12, 2012 and is subject to regulatory approval.

The net proceeds from the Financing will be used to fund the Acquisitions and for general corporate purposes.

The Ontario Portfolio consists of four single tenant industrial properties comprising an aggregate of 462,561 square feet of GLA.  The Ontario Portfolio is 100% leased to a variety of high quality national and regional tenants with a weighted average remaining lease term of approximately 6.1 years. The purchase price for the Ontario Portfolio is $34.9 million, representing a 6.85% going-in capitalization rate.

The Western Portfolio consists of five single tenant industrial properties comprising an aggregate of 237,141 square feet of GLA and will be 100% leased to a high quality national tenant under a 20 year, triple net lease. The purchase price for the Western Portfolio is $48.0 million, representing a 7.1% going-in capitalization rate.

The Calgary Properties consist of two single-tenant industrial properties comprising an aggregate of 72,549 square feet of GLA and will be 100% leased to a high quality regional tenant under a 10 year, triple net lease. The purchase price for the Calgary Properties is $8.7 million, representing a 7.3% going-in capitalization rate.

The purchase price of the Acquisitions is expected to be settled with the proceeds of the Financing, existing cash on hand and approximately $59.5 million of mortgage financing bearing an anticipated weighted average interest rate of 3.92%.

Darren Latoski, Co-CEO of PIRET, said "PIRET is continuing to take advantage of our well-established pipeline of acquisition opportunities across Canada.  We are pleased to have identified these portfolios of high quality, well tenanted industrial properties which we can acquire on an accretive basis."

About Pure Industrial Real Estate Trust

PIRET is an unincorporated, open-ended investment trust established for the purposes of acquiring, owning and operating a diversified portfolio of income-producing industrial properties in primary markets across Canada.  PIRET focuses exclusively on investing in industrial properties and is the only publicly traded REIT in Canada that offers investors exclusive exposure to Canada's industrial asset class.

Additional information about PIRET is available at www.piret.ca or www.sedar.com.

Forward-Looking Information:

Certain statements contained in this news release may constitute forward-looking statements.  Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions.  These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.  Forward looking statements in this news release include that the Financing is expected to close on or about September 12, 2012 and that the purchase price of the Acquisitions is expected to be settled with the proceeds of the Financing, cash on hand and approximately $59.5 million of mortgage financing.  The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by PIRET, including: expectations and assumptions concerning receipt of required regulatory approvals and the satisfaction of other conditions to the completion of and use of proceeds from the Financing.

Although PIRET believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because PIRET can give no assurance that they will prove to be correct.  Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.  Actual results could differ materially from those currently anticipated due to a number of factors and risks.  These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the Financing or mortgage financings, competitive factors in the industries in which PIRET operates, prevailing economic conditions, and other factors, many of which are beyond the control of PIRET.

The forward-looking statements contained in this news release represent PIRET's expectations as of the date hereof, and are subject to change after such date.  PIRET disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (as that term is defined in the policies of the TSX Venture Exchange) HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

SOURCE: Pure Industrial Real Estate Trust (PIRET)

Andrew Greig,
Director of Investor Relations

Pure Industrial Real Estate Trust 
Suite 910, 925 West Georgia Street
Vancouver, BC  V6C 3L2
Phone: [phone] or [phone]
E-mail: [email protected]
www.piret.ca

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