October 6, 2021

PROREIT Completes $69.0 Million Bought Deal Equity Offering Including Full Exercise of Over-Allotment Option and $14.3 Million Concurrent Private Placement


MONTRÉAL, Oct. 6, 2021 /CNW/ - PRO Real Estate Investment Trust ("PROREIT" or the "REIT") (TSX: PRV.UN) is pleased to announce the closing of its previously announced public offering of trust units of the REIT (the "Units") on a bought deal basis (the "Offering").  Pursuant to the Offering, the REIT issued 10,074,000 Units at a price of $6.85 per Unit (the "Offering Price") for total gross proceeds of $69,006,900, including 1,314,000 Units issued pursuant to the full exercise of the over-allotment option. Concurrently with the closing of the Offering, the REIT completed a non-brokered private placement pursuant to which it issued 2,085,744 Units at the Offering Price to Collingwood Investments Incorporated, a member of the Bragg Group of Companies, from Nova Scotia (the "Private Placement"), for total gross proceeds of $14,287,346.

The Offering was conducted through a syndicate of underwriters including TD Securities Inc. and Scotiabank as joint bookrunners and Canaccord Genuity Corp., collectively as co-lead underwriters, as well as BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc., iA Private Wealth Inc., Raymond James Ltd., Haywood Securities Inc., Laurentian Bank Securities Inc. and Leede Jones Gable Inc.

The Units issued under the Offering were issued pursuant to a prospectus supplement dated September 29, 2021 (the "Prospectus Supplement") to the REIT's base shelf prospectus dated July 13, 2021 (the "Base Shelf Prospectus"), filed with securities regulatory authorities in all provinces and territories of Canada. A copy of the Prospectus Supplement and the Base Shelf Prospectus is available under the REIT's profile on SEDAR at www.sedar.com.

As a result of the closing of the Offering and the Private Placement, Collingwood Investments Incorporated has a voting and economic interest of approximately 18.81% in PROREIT, or approximately 19.11% together with one of its related parties.

The REIT intends to use the net proceeds from the Offering and the Private Placement to partially fund the Acquisitions (as defined below), to repay certain indebtedness which may be subsequently redrawn, and the balance if any to fund future acquisitions and for general business and working capital purposes.

Property Acquisitions

The REIT announced on September 27, 2021 that it had entered into agreements to acquire a 100% interest in 15 industrial properties located in Atlantic Canada representing 1,074,269 square feet of gross leasable area ("GLA") and one industrial property in Winnipeg, Manitoba representing 106,737 square feet of GLA (collectively, the "Acquisitions") for an aggregate purchase price of $163.2 million (excluding closing costs), representing an implied weighted average capitalization rate of 5.9% and approximately $138 per square foot.

Upon completion of the Acquisitions, the REIT's portfolio will be comprised of 120 income producing commercial properties representing approximately 6.6 million square feet of GLA and $928 million of total assets with a weighted average lease term of 4.5 years. The addition of the industrial properties will improve portfolio balance by increasing PROREIT's portfolio exposure to the industrial segment to 78% by GLA and 63% by base rent, pro forma the Acquisitions.

For more information on the Offering, the Private Placement, PROREIT's intended use of the net proceeds of the Offering and the Private Placement, and the Acquisitions, please refer to the Prospectus Supplement. The Acquisitions are subject to customary closing conditions, including with respect to regulatory approvals, and are expected to close in the fourth quarter of 2021.

The securities have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. State securities laws and may not be offered or sold, directly or indirectly, within the United States or its territories or possessions or to or for the account of any U.S. person (as defined in Regulation S under the U.S. Securities Act) other than pursuant to an available exemption from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any such securities within the United States, or its territories or possessions, or to or for the account of any U.S. person.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond PROREIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements.

Forward-looking statements contained in this press release include, without limitation, statements pertaining to the closing of the Acquisitions, the use of the net proceeds of the Offering and the Private Placement, the impact of the Acquisitions on the REIT's future performance, the value of the REIT's assets following the closing of the transaction, and the ability of the REIT to executive its growth strategy. PROREIT's objectives and forward-looking statements are based on certain assumptions, including management's perceptions of historical trends, current conditions and expected future developments.

The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. PROREIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law.

Additional information about these assumptions and risks and uncertainties is contained under "Risk Factors" in PROREIT's latest annual information form and in the Prospectus Supplement, both of which are available under the REIT's profile on SEDAR at www.sedar.com.


PROREIT is an unincorporated open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. PROREIT was established in March 2013 to own a portfolio of diversified commercial real estate properties in Canada, with a focus on primary and secondary markets in Québec, Atlantic Canada and Ontario with selective expansion into Western Canada. PROREIT's portfolio is diversified by property type and geography.

For more information on PROREIT, please visit the REIT's website at: https://proreit.com.

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.


For further information:

PRO Real Estate Investment Trust
James W. Beckerleg
President and Chief Executive Officer

PRO Real Estate Investment Trust
Gordon G. Lawlor, CPA, CA
Executive Vice President
Chief Financial Officer and Secretary


September 27, 2021

PROREIT Announces Agreements to Acquire 16 Industrial Assets for an Aggregate Purchase Price of $163.2 Million, $60 Million Bought Deal Public Offering of Trust Units and $14 Million Concurrent Private Placement

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October 20, 2021

PROREIT Announces Date for Release of Third Quarter 2021 Results and Conference Call

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