NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
CALGARY, May 13, 2014 /CNW/ - FAM Real Estate Investment Trust (TSX:
F.UN) (TSX: F.WT) (the "REIT") today announced the closing of its
previously announced public offering (the "Offering") of 1,955,000
trust units ("Units"), inclusive of 255,000 Units issued pursuant to
the full exercise of the over-allotment option, on a bought deal basis,
at a price of $8.85 per Unit for total gross proceeds of $17,301,750.
The Offering was conducted through a syndicate of underwriters led by
TD Securities Inc., also including Canaccord Genuity Corp., CIBC, RBC
Capital Markets., Desjardins Securities Inc., Euro Pacific Canada Inc.
and National Bank Financial Inc.
Concurrent with the closing of the Offering, the REIT issued 831,639
Units on a private placement basis (the "Concurrent Private Placement")
to Huntingdon Capital Corp. (TSX:HNT) (TSX:HNT.DB) (TSX:HNT.WT)
("Huntingdon"), the manager of the REIT, at a purchase price of $8.85
per Unit for gross proceeds of $7,360,005.15. Following closing of the
Offering and the Concurrent Private Placement, Huntingdon will hold an
approximate 29.8% interest in the REIT.
The proceeds from the Offering and the Private Placement will be used to
(i) fund the remaining portion of its investment in a fully pre-leased
64,000 square foot data centre development in Winnipeg, Manitoba (the
"MTS Data Centre") including the $3.5 million outstanding portion of
the $6.5 million mezzanine loan to the REIT's 50% partner in the MTS
Data Centre, (ii) to fully repay amounts drawn on the REIT's revolving
credit facility, and (iii) for general trust purposes.
About FAM Real Estate Investment Trust
The REIT is a diversified commercial real estate investment trust
focused on owning and acquiring strategically well-located office,
industrial and retail real estate located primarily across Canada's
large population centres.
Forward-Looking Information and Cautionary Statements:
This press release contains forward-looking statements with respect to
the REIT and its operations, strategy, financial performance and
financial condition, as well as with respect to the MTS Data Centre
transaction. These statements generally can be identified by the use of
forward-looking words such as "forecast", "may", "will", "would",
"expect", "estimate", "anticipate", "intend", "believe" or "continue"
or the negative thereof or similar variations. Some of the specific
forward-looking statements in this press release include, but are not
limited to, statements with respect to the closing of the transactions
contemplated herein and the effect of the transactions contemplated
herein on the financial performance of the REIT. The actual results and
performance of the REIT and the properties discussed herein could
differ materially from those expressed or implied by such statements.
See the risk factors in the public filings of the REIT. Such statements
are qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Some important factors that could
cause actual results to differ materially from expectations include,
among other things, general economic and market factors, competition,
the failure to receive any required approvals or consents in connection
with the MTS Data Centre transaction or the failure to satisfy or waive
any other condition to the MTS Data Centre transaction, the failure of
the REIT to realize expected benefits from the MTS Data Centre
transaction, the failure of the REIT to satisfy the conditions of the
Offering or otherwise close the Offering, the performance of the MTS
Data Centre transaction generally, and changes in securities or other
laws or regulations or the application thereof. The cautionary
statements qualify all forward-looking statements attributable to the
REIT and persons acting on its behalf. The assumptions made in making
forward-looking statements are referred to in the public filings of the
REIT. The assumptions made in making forward-looking statements in this
press release also include the assumption that the REIT will be in a
position to satisfy the conditions in respect of the MTS Data Centre
transaction and the Offering and complete those transactions.
Unless otherwise stated, all forward-looking statements speak only as of
the date of this press release. Except as required by applicable law,
the REIT specifically disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future developments or otherwise. Additional information about these
assumptions and risks and uncertainties is contained in the REIT's
filings with securities regulators, including its latest annual
information form and MD&A. These filings are also available at the
REIT's website at www.famreit.com.
SOURCE FAM Real Estate Investment Trust
