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VANCOUVER, Jan. 21, 2013 /CNW/ – Pure Industrial Real Estate Trust (TSX:
AAR.UN) (“PIRET”) announced today that it has entered into conditional
agreements to acquire $129.4 million of income producing properties
(collectively, the “Acquisitions”), consisting of 15 industrial
properties representing over 1.4 million square feet of gross leasable
area (“GLA”). The Acquisitions consist of a property located in
Richmond, British Columbia (the “Richmond Property”), a portfolio of
four properties located in Edmonton, Alberta (the “Edmonton
Portfolio”), a portfolio of six properties located in Delta, British
Columbia, Crossfield, Alberta, Saskatoon, Saskatchewan, Winnipeg,
Manitoba, and Ajax and Kitchener, Ontario (the “East-West Portfolio”),
a portfolio of two properties located in Montreal, Quebec, and Toronto,
Ontario (the “East Portfolio”), a property located in Halton Hills,
Ontario (the “Halton Property”) and a property located in Balzac,
Alberta (the “Balzac Property”). The properties are being acquired at a
weighted average going-in capitalization rate of 6.99%.

PIRET also announced today that it has entered into an agreement to sell
to a syndicate of underwriters led by Canaccord Genuity Corp., on a
bought deal basis, 10,000,000 trust units (“Units”) at a price of $5.05
per Unit for gross proceeds to PIRET of $50.5 million (the
“Financing”). PIRET has also granted the underwriters an overallotment
option to purchase up to an additional 1,500,000 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 Financing. The Financing is
expected to close on or about February 12, 2013 and is subject to
regulatory approval.

The net proceeds from the Financing, together with the proceeds of
assumed and new mortgages, will be used to fund the Acquisitions, as
follows:

The Richmond Property consists of one multi-tenant industrial property
comprising 279,742 square feet of GLA. The Richmond Property is 100%
leased to three high quality national tenants with a weighted average
remaining lease term of approximately 7.25 years. The purchase price
for the Richmond Property is $32.3 million, representing a 6.04%
going-in capitalization rate.

The Edmonton Portfolio consists of one multi-tenant and three
single-tenant industrial properties comprising an aggregate of 362,745
square feet of GLA. The Edmonton Portfolio is 100% leased to high
quality national and regional tenants with a weighted average remaining
lease term of approximately 5.94 years. The purchase price for the
Edmonton Portfolio is $30.4 million, representing a 6.74% going-in
capitalization rate. Assuming the acquisition is completed, at closing
there will be an adjustment to the purchase price of $2.2 million in
favour of PIRET to account for capital repairs. The adjustment will
result in a net purchase price of $28.2 million for the Edmonton
Portfolio.

The East-West Portfolio consists of six single-tenant industrial
properties comprising an aggregate of 387,150 square feet of GLA. The
East-West Portfolio will be 100% leased to the vendor, a high quality
national tenant, with a weighted average remaining lease term of 20
years. The purchase price for the East-West Portfolio is $30.0
million, representing a 8.33% going-in capitalization rate. The
acquisition agreement contemplates that $3 million of the purchase
price will be paid in Units of PIRET, which Units will be held as
security to secure certain lease obligations of the vendor.

The East Portfolio consists of two single-tenant industrial properties
comprising an aggregate of 231,545 square feet of GLA. The East
Portfolio is 100% leased to a high quality national tenant with a
weighted average remaining lease term of approximately 11.3 years. The
purchase price for the East Portfolio is $18.0 million, representing a
7.02% going-in capitalization rate.

The Halton Property consists of one single-tenant industrial property
comprising 123,750 square feet of GLA. The Halton Property is 100%
leased to a high quality national tenant with a remaining lease term of
approximately 4.93 years. The purchase price for the Halton Property
is $9.8 million, representing a 6.63% going-in capitalization rate.

The Balzac Property consists of one multi-tenant industrial property
comprising 58,772 square feet of GLA. The Balzac Property is 100%
leased to a mix of quality regional tenants with a remaining weighted
average lease term of approximately 3.1 years. The purchase price for
the Balzac Property is $8.9 million, representing a 7.07% going-in
capitalization rate.

Consistent with PIRET’s past practices and in the normal course, PIRET
engages in ongoing discussions with respect to possible acquisitions
and has entered into acquisition agreements in respect of the
properties described above, which are subject to a number of
conditions. There can be no assurance that any of these acquisitions
will be completed on the terms of such agreement or at all. PIRET
continues to actively pursue acquisition and investment opportunities.

Mortgages

In aggregate, PIRET intends to place and assume new and existing
mortgage financing in respect of the Acquisitions in the aggregate of
approximately 77.7 million, bearing an anticipated weighted average
interest rate of 3.90%.

Darren Latoski, Co-CEO of PIRET, said “PIRET is continuing to take
advantage of our well established pipeline of acquisition opportunities
across Canada. We are pleased to have identified these high quality,
well tenanted industrial properties in key markets which we can acquire
on an accretive basis.”

About Pure Industrial Real Estate Trust

PIRET is an unincorporated, open-ended investment trust established for
the purposes of acquiring, owning and operating a diversified portfolio
of income-producing industrial properties in primary markets across
Canada. PIRET focuses exclusively on investing in industrial
properties and is the largest internally managed publicly traded REIT
in Canada that offers investors exclusive exposure to Canada’s
industrial asset class.

Additional information about PIRET is available at www.piret.ca or www.sedar.com.

Forward-Looking Information:

Certain statements contained in this news release may constitute
forward-looking statements. Forward-looking statements are often, but
not always, identified by the use of words such as “anticipate”,
“plan”, “expect”, “may”, “will”, “intend”, “should”, and similar
expressions. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or events
to differ materially from those anticipated in such forward-looking
statements. Forward looking statements in this news release include
the following: (i) the Financing is expected to close on or about
February 12, 2013 and is subject to regulatory approval; and (ii) in
aggregate, PIRET intends to place and assume new and existing mortgage
financing in respect of the Acquisitions in the aggregate of
approximately $77.7 million, bearing an anticipated weighted average
interest rate of 3.90%.

The forward-looking statements contained in this news release are based
on certain key expectations and assumptions made by PIRET, including:
expectations and assumptions concerning receipt of required regulatory
approvals and the satisfaction of other conditions to the completion of
and use of proceeds from the Financing.

Although PIRET believes that the expectations and assumptions on which
the forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because PIRET
can give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by
their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not
limited to, the failure to obtain necessary regulatory approvals or
satisfy the conditions to closing the Financing or mortgage financings,
competitive factors in the industries in which PIRET operates,
prevailing economic conditions, and other factors, many of which are
beyond the control of PIRET.

The forward-looking statements contained in this news release represent
PIRET’s expectations as of the date hereof, and are subject to change
after such date. PIRET disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required under
applicable securities regulations.

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.

Toronto Stock Exchange – AAR.UN

SOURCE Pure Industrial Real Estate Trust (PIRET)