TORONTO, Nov. 1, 2013 /PRNewswire/ – Granite Real Estate Investment Trust (“Granite”) (TSX: GRT.UN / NYSE:
GRP.U) today announced that it has completed its acquisition of a 2.5 million
square foot portfolio of seven properties located in Germany and the
Netherlands from funds managed by AEW Europe at a purchase price of
€129 million. The agreement to acquire the portfolio was previously
announced on August 12, 2013.

Granite also announced today the extension of the expiry date of its
fifth largest lease, as measured by annualized lease payments,¹ from December 31, 2017 to December 31, 2022. The extension terms
include Granite building a 39,000 square foot expansion of the leased
premises at a cost of approximately €4.4 million.

ABOUT GRANITE

Granite is a Canadian-based REIT engaged in the ownership and management
of predominantly industrial properties in North America and Europe.
Granite owns approximately 32 million square feet and over 100
properties. Our tenant base currently includes Magna International Inc.
and its operating subsidiaries as our largest tenants, together with
tenants from other industries.

OTHER INFORMATION

Copies of financial data and other publicly filed documents are
available through the internet on Canadian Securities Administrators’
Systems for Electronic Document Analysis and Retrieval (SEDAR) which
can be accessed at www.sedar.com and on the United States Securities and Exchange Commission’s
Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which
can be accessed at www.sec.gov. For further information, please see our website at www.granitereit.com or contact Tom Heslip, Chief Executive Officer, at 647-925-7539 or
Michael Forsayeth, Chief Financial Officer, at 647-925-7600.

FORWARD-LOOKING STATEMENTS

This press release may contain statements that, to the extent they are
not recitations of historical fact, constitute ”forward-looking
statements” or “forward-looking information” within the meaning of
applicable securities legislation, including the United States
Securities Act of 1933, as amended, the United States Securities
Exchange Act of 1934, as amended, and applicable Canadian securities
legislation. Forward-looking statements and forward-looking
information may include, among others, statements regarding Granite’s
future plans, goals, strategies, intentions, beliefs, estimates, costs,
objectives, economic performance or expectations, or the assumptions
underlying any of the foregoing. Words such as ”may”, ”would”,
”could”, ”will”, ”likely”, ”expect”, ”anticipate”,
”believe”, ”intend”, ”plan”, ”forecast”, ”project”,
”estimate”, “seek” and similar expressions are used to identify
forward-looking statements and forward-looking information.

Forward-looking statements and forward-looking information should not be
read as guarantees of future events, performance or results and will
not necessarily be accurate indications of whether or the times at or
by which such future performance will be achieved. Undue reliance
should not be placed on such statements. Forward-looking statements
and forward-looking information are based on information available at
the time and/or management’s good faith assumptions and analyses made
in light of our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe are
appropriate in the circumstances, and are subject to known and unknown
risks, uncertainties and other unpredictable factors, many of which are
beyond Granite’s control, that could cause actual events or results to
differ materially from such forward-looking statements and
forward-looking information. Important factors that could cause such
differences include, but are not limited to the risks set forth in the
annual information form of Granite REIT and Granite REIT Inc. dated
March 5, 2013 (the “Annual Information Form”). The ”Risk Factors”
section of the Annual Information Form also contains information about
the material factors or assumptions underlying such forward-looking
statements and forward-looking information. Forward-looking statements
and forward-looking information speak only as of the date the
statements and information were made and unless otherwise required by
applicable securities laws, Granite expressly disclaims any intention
and undertakes no obligation to update or revise any forward-looking
statements or forward-looking information contained in this press
release to reflect subsequent information, events or circumstances or
otherwise.

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1} Annualized lease payments does not have a standardized meaning under
International Financial Reporting Standards and may not be comparable
to similar measures reported by other entities. Granite considers
annualized lease payments to be a useful indicator of rental revenue
(excluding tenant recoveries) anticipated in the upcoming year.

SOURCE Granite REIT