European Commercial REIT closes $35M financing

News Release

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

EUROPEAN COMMERCIAL REAL ESTATE INVESTMENT TRUST COMPLETES APPROXIMATELY $35 MILLION CAPITAL RAISE

Toronto, Ontario (July 26, 2017) European Commercial Real Estate Investment Trust (“EC-REIT” or the “REIT”) (TSXV: ERE.UN) is pleased to announce today that the REIT has completed a prospectus offering (the “Offering”) of 7,430,500 units of the REIT (the “Units”) at a price of $4.50 per Unit (the “Offering Price”) as well as a concurrent private placement of 347,500 Units at the Offering Price (the “Private Placement”) for aggregate gross proceeds of approximately $35.0 million. The Offering, which will provide the REIT with total gross proceeds of $33.4 million, was underwritten by a syndicate of underwriters led by CIBC Capital Markets.

The underwriters have been granted an over-allotment option, exercisable up to 30 days following closing of the Offering, to purchase up to an additional 1,114,575 Units, which, if exercised in full, will increase the total gross proceeds of the Offering to approximately $38.5 million. The net proceeds of the over-allotment option, if exercised, will be used by the REIT for future acquisitions and for general trust purposes.

In connection with the Offering, the REIT concurrently closed the Private Placement to the officers of the REIT for gross proceeds of approximately $1.5 million. The Units issued pursuant to the Private Placement will be subject to a customary hold period required by Canadian securities laws, which will terminate on November 27, 2017.

In connection with the closings of the Offering and the Private Placement, the net proceeds of the Offering and the Private Placement will be used in part to fund the previously announced acquisition of an office property located in the central business district of Brussels, Belgium, for approximately €40.7 million (the “Brussels Property”). The acquisition of the Brussels Property is expected to be completed in the third quarter of 2017.

The Offering and Private Placement remain subject to the final approval of the TSX Venture Exchange (the “TSXV”).

The Units have not been, nor will they be, registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, “U.S. persons” (as defined in Regulation S under the United States Securities Act of 1933, as amended) except pursuant to certain exemptions. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Units in the United States or to, or for the account or benefit of, U.S. persons.
About European Commercial Real Estate Investment Trust

EC-REIT is an unincorporated, open-ended real estate investment trust focused on aggregating a bespoke portfolio of high-quality, non-prime core commercial real estate assets in key European markets with strong fundamentals. EC-REIT’s strategy is designed primarily to deliver long-term, secure income with additional potential for capital appreciation. The REIT intends to grow by acquiring additional assets consistent with its strategy and which are expected to be accretive, on a per Unit basis, to its earnings. EC-REIT’s Units are listed on the TSXV under the symbol ERE.UN.

For more information please contact: Phillip Burns

Chief Executive Officer
European Commercial Real Estate Limited
Email: phillip.burns@ecreit.com