Agellan Commercial Real Estate Investment Trust Announces $50 Million Bought Deal Financing

TORONTO, ONTARIO–(Marketwired – Feb. 15, 2017) –

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

Agellan Commercial Real Estate Investment Trust (TSX:ACR.UN) (the “REIT”) announced today that is has entered into an agreement to sell to a syndicate of underwriters led by RBC Capital Markets and BMO Capital Markets (the “Underwriters”), on a bought deal basis, 4,370,000 units (the “Units”) at a price of $11.45 per Unit (the “Offering Price”) for gross proceeds to the REIT of $50,036,500 (the “Offering”).

The REIT has also granted the underwriters an overallotment option to purchase up to an additional 437,000 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 Offering.

The Offering is expected to close on or about February 27, 2017 and is subject to regulatory approval, including the approval of the Toronto Stock Exchange.

The REIT intends to use the net proceeds from the Offering to repay approximately US$9.0 million of outstanding mortgage debt as well as certain indebtedness owing under the REIT’s existing credit facilities, and the remainder to fund potential future acquisitions and for general business purposes.

The offering is being made under the REIT’s short form base shelf prospectus dated June 3, 2016. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators in each of the provinces and territories of Canada.

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 Agellan Commercial Real Estate Investment Trust

The REIT is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT was created for the purpose of acquiring and owning industrial, office and retail properties in select target markets in the United States and Canada.

The REIT’s current portfolio aggregates approximately 5.9 million square feet of gross leasable area in 34 properties. The properties are primarily located in major urban markets in the United States and Canada.

Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. These forward-looking statements are made as of the date of this press 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.