Slate U.S. Opportunity (No. 3) Realty Trust Announces Closing of its Initial Public Offering

/NOT FOR DISSEMINATION IN THE UNITED STATES/

TORONTO, Oct. 16, 2013 /CNW/ - Slate U.S. Opportunity (No. 3) Realty Trust (the "Trust") announced today that it has completed its initial public offering of class A units (the "Class A Units"), class F units (the "Class F Units") and class U units (the "Class U Units" and, collectively with the Class A Units and the Class F Units, the "Units") at a price of C$10.00 per Class A Unit and Class F Unit and U.S.$10.00 per Class U Unit (the "Offering"). The Offering raised total gross proceeds of approximately U.S.$57,500,000. The Units are qualified investments for Trusts governed by an RRSP, RESP, RRIF, deferred profit sharing plan, registered disability savings plan or a TFSA. Contemporaneously with the closing of the Offering, the Trust also issued 1,750,000 Class I Units on a private placement (the "Private Placement") basis to various institutional investors, including Queen's Court Advisors Ltd. ("Queen's Court") (an affiliate of Slate Properties Inc.), at a purchase price of U.S.$10.00 per Class I Unit for gross proceeds of U.S.$17,500,000. The total gross equity raised from the Offering and Private Placement is approximately U.S.$75,000,000.

The investment objectives of the Trust are to: (a) indirectly acquire, own and lease a portfolio of diversified revenue-producing commercial real estate properties in the U.S. with a focus on anchored retail properties; (b) make quarterly distributions commencing upon the earlier of (i) the end of the fiscal quarter in which the Investable Funds (as defined in the Prospectus) are substantially invested and (ii) June 30, 2014; and (c) enhance the potential for long-term growth of capital through value-added enhancements to the properties owned indirectly by the Trust and organic growth in rental rates, combined with an overall reduction in capitalization rates.

The syndicate of agents for the Offering was led by CIBC, GMP Securities L.P. and RBC Capital Markets and includes BMO Capital Markets, Macquarie Private Wealth Inc., National Bank Financial Inc., Raymond James Ltd., Scotiabank, Dundee Securities Ltd. and Mackie Research Capital Corporation.

Slate Properties Inc. ("Slate") is the promoter of the Trust by reason of its initiative in organizing the business of the Trust and taking the steps necessary for the public distribution of the Units. In addition, Slate will be the manager of the Trust.

Slate is a Toronto-based commercial real estate investor and asset manager. Slate's founding partners have nearly two decades of experience in the industry managing complex real estate transactions in domestic and international markets. Since 2005, the company has acquired over C$2.2 billion of commercial real estate assets across North America.  The company currently co-invests and manages various investment vehicles, including Slate U.S. Opportunity (No. 1) Realty Trust, Slate U.S. Opportunity (No. 2) Realty Trust, and a closed-end private fund focused on U.S. retail assets in addition to the company's co-investments and management of Canadian office properties with domestic institutional equity groups.

This news release, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This offering is only made by prospectus, only to Canadian residents, and only as permitted by law. This news release contains forward-looking information, and actual future results may differ from the Corporation's objectives. The risks, uncertainties and other factors that could influence actual results are described in the prospectus, which contains important detailed information about the securities being offered, and which investors should read before making an investment decision.

SOURCE: Slate Properties Inc.

or to obtain a copy of the early warning reports to be filed by Queen's Court in connection with their acquisition of Class I Units contact: Blair Welch [phone] or Brady Welch [phone]