MRD Melcor Developments Ltd

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES


Melcor Developments Ltd. (TSX:MRD) and Melcor Real Estate Investment Trust (the
"REIT") announced today that the REIT has filed, and obtained a receipt for, a
final prospectus for its initial public offering of 8,300,000 trust units with
the securities commissions of all provinces and territories in Canada. The trust
units will be issued at a price of $10.00 per trust unit and are expected to
provide holders of trust units with an annual yield of 6.75%. Gross proceeds of
the offering are expected to be $83,000,000. 


The offering is being underwritten by a syndicate of underwriters co-led by RBC
Capital Markets and CIBC, and including BMO Nesbitt Burns, TD Securities Inc.,
Desjardins Securities Inc., National Bank Financial Inc., Scotia Capital Inc.,
Canaccord Genuity Corp. and Laurentian Bank Securities Inc. Melcor Developments
Ltd. and the REIT have granted to the underwriters an over-allotment option to
purchase up to an additional 830,000 trust units at a price of $10.00 per unit
for a period of 30 days after closing of the offering and, if exercised in full,
will increase the total gross proceeds of the offering to Melcor and the REIT to
$91,300,000. 


The Toronto Stock Exchange (the "TSX") has conditionally approved the listing of
the trust units under the symbol "MR.UN", subject to fulfilling all of the
requirements of the TSX.


The REIT initially intends to make monthly cash distributions to its unitholders
at a rate of $0.05625 per trust unit, which are initially expected to provide an
annual yield of 6.75%. The first cash distribution, which will be for the period
from the date of closing of the offering to May 31, 2013, is expected to be paid
on or about June 14, 2013 to unitholders of record on May 31, 2013, in an amount
estimated to be $0.05625 per unit (assuming the closing occurs on May 1, 2013).
The offering is expected to close on May 1, 2013. 


On closing of the initial public offering, it is expected that Melcor
Developments Ltd. (collectively, with its affiliates, "Melcor") will directly or
indirectly hold a 55.5% interest in the REIT (51.1% if the over-allotment option
is exercised in full). Melcor's experienced real estate team will externally
administer and operate the REIT's properties.


Copies of the final prospectus are available under the REIT's profile on SEDAR
at www.sedar.com.


The trust units have not been, nor will they be, registered under the United
States Securities Act of 1993, 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). This press release does not
constitute an offer to sell or a solicitation of an offer to buy any of the
trust units in the United States or to, or for the account or benefit of, U.S.
Persons.


About Melcor Developments Ltd. 

Melcor is a diversified real estate development and management company with a
rich heritage of integrity and innovation in real estate since 1923. 


Through four integrated operating divisions, Melcor manages the full life cycle
of real estate development: from acquiring raw land, to community planning, to
construction and development, to owning and managing leasable office, retail and
residential sites. Melcor develops and manages mixed-use residential
communities, business and industrial parks, office buildings, retail commercial
centres and golf courses. 


Melcor's headquarters are located in Edmonton, Alberta, with regional offices
throughout Alberta and British Columbia. Company developments span Western
Canada and the US. Melcor has been a public company since 1968 and trades on the
Toronto Stock Exchange (TSX:MRD). 


Forward-Looking Statements

This press release may contain forward-looking information within the meaning of
applicable securities legislation, which reflects Melcor's and the REIT's
current expectations regarding future events. 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 Melcor's or 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. Such risks and
uncertainties include, but are not limited to, failure to complete the initial
public offering of trust units and related transactions, and the factors
discussed under "Risk Factors" in the final prospectus of the REIT dated April
19th, 2013. Neither Melcor nor the REIT 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. 


For more information, visit the REIT's website at www.melcorREIT.ca  and the
REIT's and Melcor's respective issuer profiles at www.sedar.com


FOR FURTHER INFORMATION PLEASE CONTACT: 
Brian Baker - Business Contact
President & COO, Melcor Developments Ltd.
Trustee, Melcor Real Estate Investment Trust
780-423-6931


Darin Rayburn - Business Contact
Executive Vice-President, Melcor Developments Ltd.
CEO, Melcor Real Estate Investment Trust
780-423-6931


Investor Relations
Jonathan Chia, CA
CFO, Melcor Developments Ltd.
CFO, Melcor Real Estate Investment Trust
780-423-6931
www.melcorREIT.ca

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