Retrocom REIT Announces Closing of Property Portfolio Acquisition From First Capital Realty Inc. and Closing of $15 Million Private Placement

TORONTO, ONTARIO--(Marketwired - June 5, 2013) -

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Retrocom Real Estate Investment Trust (the "REIT" or "Retrocom") (TSX:RMM.UN) announced today that it has completed the acquisition of twelve investment properties from First Capital Realty Inc. totalling approximately 964,000 square feet, as previously announced on April 30, 2013. The total purchase price was satisfied by assumption of mortgage debt on four of the properties, an amount drawn on a secured non-revolving credit facility, proceeds from the offering that closed on May 27, 2013, proceeds from the private placement previously announced on April 30, 2013, and cash on hand. The portfolio is currently 96.2% leased.

The following table provides a summary description of the portfolio:

Name	City		Province	GLA (sq. ft.)	Key Tenants
South Fraser Gate	Abbotsford		BC	32,458	Shoppers Drug Mart
Cochrane City Centre	Cochrane		AB	58,177	Shoppers Drug Mart, CIBC
Eastview Shopping Centre	Red Deer		AB	35,211	Sobeys, BMO, 7-Eleven
Tillsonburg Town Centre	Tillsonburg		ON	281,192	Walmart, Canadian Tire, Shoppers Drug Mart, LCBO, TD, CIBC
Norfolk Mall	Tillsonburg		ON	88,009	Dollarama, Swiss Chalet/Harvey's
Bowmanville Mall	Bowmanville		ON	126,258	Metro, Shoppers Drug Mart, GoodLife Fitness, Dollarama
Bowmanville Square	Bowmanville		ON	27,910	Staples, The Beer Store, RBC
Carrefour des Forges	Drummondville		QC	74,782	IGA Extra, SAQ, Dollarama, National Bank
Plaza Don Quichotte	Greater Montreal Area		QC	103,625	IGA Extra, SAQ, Desjardins Credit Union
Galleries Don Quichotte	Greater Montreal Area		QC	26,742	Laurentian Bank, L'Aubainerie
Carrefour Don Quichotte	Greater Montreal Area		QC	72,220	Giant Tiger, CIBC
IGA Tremblant	Mont-Tremblant		QC	37,549	IGA Extra
Total				964,133

Private Placement

The REIT today closed the private placement previously announced on April 30, 2013 of $7.5 million of units of the REIT at a price of $5.25 per unit and $7.5 million aggregate principal amount of seven year, 5.50% convertible unsecured subordinated debentures.

Subscription Receipts Exchanged for Units and Debentures Extended

All conditions to the exchange of the subscription receipts for units of the REIT, and to the extension of the maturity date of the 5.50% extendible convertible unsecured subordinated debentures of the REIT, have been satisfied. As a result, each holder of subscription receipts will automatically receive, without payment of additional consideration, one unit of the REIT for each subscription receipt held plus a cash amount equal to the per-unit cash distribution declared by the REIT on units for May 2013 multiplied by the number of subscription receipts held by such holder. In addition, the maturity date of the 5.50% extendible convertible unsecured subordinated debentures has been extended to June 30, 2020.

About Retrocom REIT

Retrocom REIT is an unincorporated, open-end real estate investment trust which focuses on owning and acquiring retail properties across Canada with the goal of enhancing long-term unitholder value.

The trustees of the REIT have approved changing the name of the REIT to Retrocom Real Estate Investment Trust, subject to regulatory approval.

Forward-Looking Information

This press release may contain forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", and by discussions of strategies that involve risks and uncertainties. The forward-looking statements are based on certain key expectations and assumptions made by the REIT regarding, among other things, the use of the net proceeds from the offering, and the closing of the acquisition. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Although management of the REIT believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Neither the REIT nor any other person assumes responsibility for the accuracy and completeness of any forward-looking statements, and no one has any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or such other factors which affect this information, except as required by law.