Dundee REIT has entered into an agreement to sell 3,360,000 REIT Units, Series A on a bought deal basis at a price of $29.85 per Unit to a syndicate of investment dealers led by TD Securities Inc. for gross proceeds of $100,296,000. In addition, Dundee REIT has granted the syndicate an over-allotment option, exercisable for a period of 30 days following closing, to purchase up to an additional 504,000 Units which, if exercised, would increase the gross offering size to $115,340,400. The net proceeds of the offering will be used to fund committed and future acquisitions and for general trust purposes.
Since the beginning of 2010, Dundee REIT has completed approximately $689 million of acquisitions, adding over four million square feet of properties to its portfolio. In addition, Dundee REIT has approximately $240 million of office properties under contract. The seven properties under contract have strong tenant profiles, average in-place net rents below market rents and are located across Canada, including the Provinces of British Columbia, Alberta, Saskatchewan and Ontario. The acquisitions, most of which are expected to close prior to the end of the year, comprise 906,000 square feet, have an average lease term of 5.2 years and an occupancy rate of 92 per cent. In addition to the approximately $240 million of properties subject to binding agreements, Dundee REIT continues to see acquisition opportunities and is in various stages of due diligence on numerous additional properties.