WEST SIDE SQUARE DEVELOPMENT FUND SECURES FINANCING FOR NEW JERSEY DEVELOPMENT PROJECT AND ENTERS INTO DEVELOPMENT MANAGEMENT AGREEMENT

TORONTO, June 24, 2024 /CNW/ - West Side Square Development Fund (the "Trust") announced today that it has entered into a loan agreement in the amount of US$169,300,000 (the "Loan") through its nominee entity, Avenir West Side Square LLC (the "Nominee") as borrower, BPT WSS FUNDING LLC, LEXINGTON EV MARION LLC, LEXINGTON SI3 MARION LLC, and BPSJ MARION LLC (collectively, the "Lenders") and BPT WSS FUNDING LLC, in its capacity as administrative agent on behalf of the Lenders. The maturity date of the Loan is June 30, 2027, however, the Trust has the option to request two 6-month extensions of the term of the Loan (December 31, 2027 or June 30, 2028, respectively), subject to the satisfaction of certain conditions under the loan agreement.

In addition, the Trust through its Nominee has entered into a development management agreement with Lantree Developments LP ("Lantree") and Altree Management Inc. ("Altree", and collectively with Lantree, the "Development Manager") under which the Development Manager has been retained to perform certain management and supervisory services with respect to certain pre-development, development and other construction services to be provided by a contractor or any subcontractors and consultants with respect to the development of the mixed-use purpose-built rental building containing 477 rental units and approximately 9,800 square feet of commercial space located at 66 Broadway in the Journal Square neighborhood in Jersey City, New Jersey (the "Project"), as further described in the Trust's final prospectus for its initial public offering.

The Trust was established for the primary purpose of indirectly owning an interest in the development of the Project. The Project is located a mile away from the Journal Square Transportation Center, which is an approximate 13-minute train ride from the financial district of Manhattan.

West Side Square Development Fund

West Side Square Development Fund was formed for the primary purpose of indirectly owning an interest in the development of a mixed-use purpose-built rental building containing 477 rental units and approximately 9,800 square feet of commercial space located at 66 Broadway in the West Side Square neighborhood in Jersey City, New Jersey.

Forward-Looking Statements

This news release contains statements that include forward-looking information within the meaning of Canadian securities laws. These forward-looking statements reflect the current expectations of the Trust regarding future events, including statements concerning the development of the Project. In some cases, forward-looking statements can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.

Material factors and assumptions used by management of the Trust to develop the forward-looking information include, but are not limited to, the Trust's current expectations about: real property ownership and revenues; construction and development risk; obtaining necessary development permits for the Project; the realization of property value appreciation and timing thereof; the inventory of mixed-use properties; competition from developers of mixed-use properties; the Jersey City, New Jersey real estate market; government legal and regulatory changes; property encumbrances relating to the Project; significant fixed expenditures and fees in connection with the maintenance, operation and administration of the Project; closing and other transaction costs in connection with the acquisition and disposition of the Project; the availability of mortgage financing and current interest rates; revenue shortfalls; assumptions about rental growth rates in the U.S. mixed-use real estate market, demographic trends and the markets in which the Trust intends to operate; fluctuations in interest rates; litigation risks; the relative illiquidity of real property investments; the U.S. economic environment; the geographic concentration of the Trust's business; demand levels for mixed-use properties in Jersey City and local economic conditions; negative geopolitical events; public health crises; the capital structure of the Trust; distributions; capital depletion; foreign currency exchange rates and assumptions related thereto; potential conflicts of interest; reliance on the good faith and ability of the manager of the Trust to manage and operate the Project; reliance on other third-party property management companies; the limited operating history of the Trust; the limited experience of management of the Trust with respect to managing a reporting issuer; the limited liquidity of the Units; and tax laws. While management of the Trust considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.

Although management believes the expectations reflected in such forward-looking statements are reasonable and represent the Trust's internal projections, expectations and beliefs at this time, such statements involve known and unknown risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the Trust's control, could cause actual results in future periods to differ materially from current expectations of estimated or anticipated events or results expressed or implied by such forward-looking statements. Such factors include the risks identified in the Trust's final prospectus, including under the heading "Risk Factors" therein. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the Trust undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

SOURCE West Side Square Development Fund

For further information, please contact: NATALIE LEIBOWITZ, CHIEF FINANCIAL OFFICER, WEST SIDE SQUARE DEVELOPMENT FUND, [phone], [email protected]