AIP.U AIP Realty Trust

AIP Realty Trust (the “Trust” or “AIP Realty”) (TSXV:AIP.U) announced today that it will not be proceeding with the public offering of trust units announced on June 10, 2022 (the “Offering”). The termination results from an assessment by Trust that current market conditions are not conducive for an offering on terms that would be in the best interests of AIP’s unitholders. As a result of this termination, no trust units will be sold pursuant to the offering.

The Trust’s exclusive development partner, AllTrades Industrial Properties, Inc. (“AllTrades”) continues to advance its pipeline of new light industrial flex facilities properties in the Dallas-Fort Worth (“DFW”) and the Austin, Texas markets. In addition to the five previously announced on May 24, 2022, AllTrades begins development on six facilities this month, being fully funded with equity capital from AllTrades and Trinity Investors (“Trinity”), a $6 billion Dallas-based real estate private equity fund. AllTrades also plans on starting another six facilities by the end of this year. The Trust has an exclusive agreement with AllTrades that provides it the option to purchase these facilities in the future.   

AIP Realty announced on May 24, 2022, that it has entered into membership purchase agreements (the “Agreements”) with AllTrades Five Properties, LLC (“AT5P”) providing the Trust with the exclusive option to acquire up to five of these properties, including the recently completed facility in Mesquite, TX (the “Mesquite Property”). As announced by the Trust on August 9, 2022, the 49,713 square foot Mesquite Property was 96% leased upon completion of construction, and pre-leasing on the remaining four facilities subject to the Agreements is tracking similarly to this facility at an equivalent stage. The Trust will not be exercising its option to acquire the Mesquite Property at this time, however, it retains the exclusive right to do so in the future if certain conditions are met.

About AIP Realty Trust

AIP Realty Trust is a real estate investment trust with a growing portfolio of light industrial flex facilities focused on small businesses and the trades and services sectors in the U.S. These properties appeal to a diverse range of small space users, such as contractors, skilled trades, suppliers, repair services, last-mile providers, small businesses and assembly and distribution firms. They typically offer attractive fundamentals including low tenant turnover, stable cash flow and low capex intensity, as well as significant growth opportunities. With an initial focus on the Dallas-Fort Worth market, AIP plans to roll out this innovative property offering nationally. AIP holds the exclusive rights to finance the development of and to purchase all the completed and leased properties built across North America by its development and property management partner, AllTrades Industrial Properties, Inc. For more information, please visit www.aiprealtytrust.com.

For further information from the Trust, contact:Leslie WulfExecutive Chairman(214) 679-5263les.wulf@aiprealtytrust.com 

Or

Greg VorwallerChief Executive Officer(778) 918-8262Greg.vorwaller@aiprealtytrust.com 

Cautionary Statement on Forward-Looking Information

This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of AIP Realty Trust with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding, future acquisitions by the Trust, the ability to obtain regulatory and unitholder approvals and other factors. When or if used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to proposed financing activity, proposed acquisitions, regulatory or government requirements or approvals, the reliability of third-party information and other factors or information. Such statements represent the Trust’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Trust, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward- looking statements. The Trust does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release is not an offer of securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”). The Trust has not registered and will not register the securities under the U.S. Securities Act. The Trust does not intend to engage in a public offering of their securities in the United States.

Source: AIP Realty Trust