/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES/
This news release constitutes a "designated
news release" for the purposes of the REIT's prospectus supplement
dated December 8, 2021, to its short
form base shelf prospectus dated December 1,
2021.
LITTLE
ROCK, Ark. and TORONTO, April 29,
2022 /CNW/ - BSR Real Estate Investment Trust ("BSR"
or the "REIT") (TSX: HOM.U) (TSX: HOM.UN) announced today that it
has completed its previously announced public offering (the "Public
Offering") of trust units of the REIT ("Units") to a
syndicate of underwriters led by BMO Capital Markets, RBC Capital
Markets, and CIBC Capital Markets (the "Underwriters") on a bought
deal basis. A total of 5,888,000 Units were issued at a price of
US$19.55 per Unit for total gross
proceeds to the REIT of US$115,110,400, which includes the gross proceeds
from the full exercise of the over-allotment option granted to the
Underwriters to purchase an additional 768,000 Units.
BSR intends to use the net proceeds from the Public Offering to
repay outstanding indebtedness, to fund future acquisitions and for
general trust purposes. With today's closing of the Public
Offering, BSR expects to have a debt-to-gross book value of
approximately 37.9% including the convertible debentures and 35.1%
excluding the convertible debentures and access to approximately
US$150 million of available liquidity
through unrestricted cash and borrowing capacity available under
its credit facility.
The Units were offered in each of the provinces and territories
of Canada pursuant to the REIT's
short form prospectus dated April 26,
2022 (the "Prospectus"). The terms of the Public Offering
are described in the Prospectus filed with Canadian securities
regulators. A copy of the Prospectus is available under the REIT's
profile on the SEDAR website at www.sedar.com.
The Units have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended, (the "1933 Act")
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 1933 Act), except pursuant to an exemption
from the registration requirements of the 1933 Act. This press
release does not constitute an offer to sell or a solicitation of
an offer to buy any Units in the United
States or to, or for the account or benefit of, U.S.
persons.
ABOUT BSR REAL ESTATE INVESTMENT TRUST
BSR Real Estate Investment Trust is an internally managed,
unincorporated, open-ended real estate investment trust established
pursuant to a declaration of trust under the laws of the Province
of Ontario. The REIT owns a
portfolio of multifamily garden-style residential properties
located in attractive primary and secondary markets in the Sunbelt
region of the United States.
Additional information about the REIT is available at
www.bsrreit.com or www.sedar.com.
Forward-Looking Information
This news release contains forward-looking information within
the meaning of applicable securities legislation, which reflects
the REIT's current expectations regarding future events, including
statements about the Public Offering, the anticipated use of
proceeds thereof, anticipated leverage, available liquidity,
positive industry dynamics, continued execution of the REIT's
growth plan, and acquisition capacity. In some cases
forward-looking information can be identified by such terms as
"will", "would" and "expected". 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 and events to differ
materially from those that are disclosed in or implied by such
forward-looking information. The REIT's estimates, beliefs and
assumptions, which may prove to be incorrect, include those
relating to the REIT's ability to finance and complete future
acquisitions, and that COVID-19 will not have a material impact on
the REIT's operations, business and financial results. The risks
and uncertainties that may impact such forward-looking information
include, but are not limited to, the impact of COVID-19 on the
REIT's operations, business and financial results and the factors
discussed under "Risks and Uncertainties" in the REIT's
Management's Discussion and Analysis for the year ended
December 31, 2021 and under "Risk
Factors" in the REIT's annual information form dated March 8, 2022, both of which are available on
SEDAR (www.sedar.com). There can be no assurance that
forward-looking statements will prove to be accurate as actual
outcomes and results may differ materially from those expressed in
these forward-looking statements. Readers, therefore, should not
place undue reliance on any such forward-looking statements. The
REIT does not undertake any obligation to update such
forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law. This forward-looking information speaks
only as of the date of this news release.
SOURCE BSR Real Estate Investment Trust