Dundee Industrial REIT Acquires Industrial Portfolio from Niagara Acquisition LP

Dundee Industrial REIT (“Dundee”) completed an acquisition of an industrial portfolio of properties located in Alberta, Ontario, Quebec and Nova Scotia, totaling 5.3 million square feet of industrial space, for the aggregated sum of $498 million from Niagara Acquisition LP (“Niagara”). The transaction was a joint venture between KingSett Real Estate Growth LP No. 3 (“KingSett”) and its affiliates and certain clients of Alberta Investment Management Corp (AIMCo).

The acquisition was funded in part with the net proceeds of a $230 million public offering of units and convertible debentures completed by Dundee on December 13, 2012, as well as the issuance on closing of $25 million of units and $25 million of convertible debentures to affiliates of KingSett.

Dundee satisfied the balance of the purchase price by assuming approximately $148.5 million of existing mortgage debt, by incurring $35 million of new mortgage debt from Royal Bank of Canada (“RBC”) and with funds drawn under a bridge credit facility from The Toronto-Dominion Bank (“TD”) established to close the transaction.

In connection with the acquisition, public offering and financings, Dundee was represented by Mark Hogan, Vice-President, Business Development & General Counsel, and by Osler, Hoskin & Harcourt LLP with a team comprising George Valentini, Stella Di Cresce, Ryan Nielsen, Nicole Cloutier, Myriam Sarrazin, Craig Fahlman and Colin Keith (real estate and financings); Shuli Rodal and Jordan Giurlanda (competition) and Desmond Lee, Adam Stewart, Amelia Miao and Kathryn Houlden (securities). Wayne Howatt and David Lewis of Burchells LLP provided legal advice with respect to the properties located in Nova Scotia.

Niagara was represented by Bennett Jones LLP with a team comprising Paul Mantini, Simon Crawford, John van Gent, Michael Kershaw and Adam Kalbfleisch (competition) and Ron Barron and Claire Webster.

RBC was represented by McMillan LLP with a team of Paul Avis, Andrea Onn and Stephanie Hamelin.

TD was represented by McCarthy Tétrault LLP with a team comprising John Currie, Paul Galbraith, Andrejs Mistiouk and Annie Gagnon-Larocque.

FCT provided commercial title insurance for the purchaser's interest in all of the properties as well as lender's interest for some of the properties.