Inovalis Real Estate Investment Trust Announces a $45 Million Bought Deal Financing to Fund the Acquisition of the Remaining JV Ownership in Paris Property - Seite 2

Acquisition Highlights

• The proposed transaction is expected to provide mid-single digit accretion to 2020 and 2021 AFFO per unit estimates
• The purchase price represents a capitalization rate of approximately 7.7%, while similar properties in the region have transacted for capitalization rates from 6.0% to 6.5%
• In excess of €8M spent to date on building improvements and modernizing the property by the previous institutional landlord and existing tenant
• Additional opportunities to generate revenue growth, with current rent at €220 per square metre compared to market at €260 per square metre
• Robust development potential with the site in receipt of planning approvals for an additional 10,000 square metre of office space
• A premium office property located in a desirable region with several high-profile companies relocating to the area over the last decade

Acquisition Funding
The purchase price of the Potential Acquisition will be satisfied using net proceeds of the Offering and a portion of the net proceeds from the previously announced sale of the Vanves property, which was announced in Q3 2019 and expected to close prior to December 31, 2019. Following completion of the Offering and assuming the closing of the Potential Acquisition as currently contemplated, the REIT's Debt to Gross Book Value ratio would be approximately 45%.

There can be no assurance the Potential Acquisition will close. The Offering is not conditional on the closing of the Potential Acquisition, and in the event the Potential Acquisition does not close, the net proceeds are expected to be used to fund future acquisitions. Until deployed for these purposes, the REIT intends to use the funds for general trust purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Units have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities legislation.  Forward-looking information generally can be identified by the use of forward-looking words such as “forecast”, “may”, “will”, “would”, “expect”, “estimate”, “anticipate”, “intend”, “believe” or “continue” or similar expressions suggesting future outcomes or events. Some of the specific forward-looking information in this press release may include, among other things, the REIT’s operations, strategy, financial performance and financial condition, as well as the REIT’s expectations regarding the Offering and the acquisition of the 75% interest in the Arcueil property. Forward looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to: global and local economic and business conditions; the financial condition of tenants; our ability to refinance maturing debt; leasing risks, including those associated with the ability to lease vacant space; and interest and currency rate functions; as well as the risk that the properties may not perform as anticipated. The REIT's objectives and forward-looking statements are based on certain assumptions, including that the Canadian and European economies remain stable, interest rates remain stable, conditions within the real estate market remain consistent, competition for acquisitions remains consistent with the current climate and that the capital markets continue to provide ready access to equity and/or debt. All forward-looking information in this news release speaks as of the date of this news release. The REIT 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 in the REIT's filings with securities regulators, including its latest MD&A.