FAM Real Estate Investment Trust Completes the Acquisition of Seven Office Properties from Slate GTA Suburban Office

NOT FOR DISSEMINATION IN THE UNITED STATES

TORONTO, Dec. 17, 2014 /CNW/ - FAM Real Estate Investment Trust ("FAM REIT" or the "REIT") (TSX: F.UN) (TSX: F.WT) is pleased to announce the closing of its previously announced indirect acquisition (the "Acquisition") of a portfolio of seven office properties from Slate GTA Suburban Office Inc. ("Slate GTA") for approximately $190.0 million. As partial consideration for the Acquisition, the REIT delivered: (i) 2,794,363 units of the REIT to Subcore Equities Inc., a private corporation managed by Greystone Managed Investments Inc. on behalf of certain pension fund clients, as designee of Slate GTA; and (ii) 2,096,686 Class B exchangeable units (the "Class B Units") of FAM II Limited Partnership, a limited partnership managed and controlled by the REIT, to Slate GTA, along with 2,096,686 special voting units of the REIT which accompany and attach to Class B Units. The remaining consideration for the Acquisition was satisfied by payment of approximately $144.0 million in cash, which was satisfied with the proceeds of a mortgage secured by the seven office properties. Further details of the Acquisition are set forth in the REIT's information circular dated October 30, 2014 and the REIT's press release dated October 29, 2014 announcing the Acquisition.

Huntingdon Capital Corp. ("Huntingdon"), a wholly-owned subsidiary of Toronto-based Slate Asset Management LP ("Slate"), is the REIT's manager.

This press release is also being issued by Slate GTA in connection with the filing of an early warning report regarding its acquisition of the above Class B Units in connection with the Acquisition.  After giving effect to the above transactions, Slate GTA, together with its affiliate Huntingdon, has beneficial ownership over approximately 33.67% of the units of the REIT (undiluted) through their beneficial ownership of units of the REIT, Class B exchangeable units and special voting units of the REIT.  A copy of the early warning report may be found on the REIT's SEDAR profile at www.sedar.com. In order to obtain a copy of the report, please contact Slate using the contact information provided below.

About FAM REIT
FAM REIT is an open-ended real estate investment trust. The REIT's portfolio comprises 35 strategic and well-located real estate assets located primarily across Canada's major population centres. The REIT is focused on maximizing value through internal organic rental and occupancy growth and strategic acquisitions.  More information is available at www.famreit.com.

About Slate
Slate Asset Management LP is a leading real estate investment platform with over $2 billion in assets under management. Slate is a value-oriented company and a significant sponsor of all its private and publicly-traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm's careful and selective investment approach creates long term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a proven ability to originate and execute on a wide range of compelling investment opportunities. More information is available at www.slateam.com.

SOURCE FAM REIT