LANTOWER RESIDENTIAL REAL ESTATE DEVELOPMENT TRUST (NO. 1) RAISES US$52 MILLION MAXIMUM SIZE INITIAL PUBLIC OFFERING AND ACQUIRES INTEREST IN THE DEVELOPMENT OF TWO PROJECTS IN FLORIDA

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ 

TORONTO, April 3, 2024 /CNW/ - Lantower Residential Real Estate Development Trust (No. 1) (the "REDT") announced today that it has raised its maximum offering size of US$52 million and completed its initial public offering (the "Offering"). Pursuant to the Offering, the Trust issued US$52,000,000 of trust units, consisting of 3,187,105 Class A Units, 185,400 Class E Units, 2,299,800 Class F Units and 971,900 Class U Units (collectively, the "Units") at a price of C$10.00 per Class A Unit and Class F Unit and US$10.00 per Class E Unit and Class U Unit.

The REDT is a newly-created, unincorporated investment trust and was established for the primary purpose of indirectly owning an interest in the development of two projects in Florida (the "Projects") expected to contain an aggregate of 601 units comprising:

Development of the Projects is expected to commence shortly, with total budgeted costs for the Projects of approximately US$210 million. Construction is expected to be completed and lease-up is expected to commence in Q1 2026 for the Largo, Florida project and Q2 2026 for the Kissimmee, Florida project.

Immediately following closing of the Offering, the REDT indirectly acquired an approximate 70.9% interest in the Projects. H&R Real Estate Investment Trust ("H&R REIT"), as the sponsor of the REDT, has retained an approximate 29.1% ownership interest in the Projects through H&R REIT's wholly owned subsidiary, Lantower Residential LP. The REDT is managed by H&R REIT Management Services Limited Partnership, a subsidiary of H&R REIT.

The Units were offered to the public by CIBC World Markets Inc., the sole agent for the Offering.

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and may not be offered or sold within the United States unless registered under the 1933 Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the 1933 Act and applicable state securities laws.

Lantower Residential Real Estate Development Trust (No. 1)

Lantower Residential Real Estate Development Trust (No. 1) was formed for the primary purpose of indirectly owning an interest in the development of two residential development projects in Florida expected to contain an aggregate of 601 units and an aggregate of 603,000 net rentable square feet, in Largo, Florida (Tampa) and Kissimmee, Florida (Orlando).

Forward-Looking Statements

This news release contains statements that include forward-looking information within the meaning of Canadian securities laws. These forward-looking statements reflect the current expectations of the REDT regarding future events, including statements concerning the development of the Projects, the timing of construction and completion, expected construction plans and expected square footage, and estimated development costs. In some cases, forward-looking statements can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.

Material factors and assumptions used by management of the REDT to develop the forward-looking information include, but are not limited to, the REDT's current expectations about: real property ownership and revenues; construction and development risk; obtaining and finalizing necessary development permits for the Projects; the realization of property value appreciation and timing thereof; the inventory of residential rental properties; competition from developers of residential rental properties; the Tampa, Florida and Orlando, Florida real estate markets; government legal and regulatory changes; significant fixed expenditures and fees in connection with the maintenance, operation and administration of the Projects; closing and other transaction costs in connection with the acquisition and disposition of the Projects; the availability of mortgage financing and current interest rates; revenue shortfalls; assumptions about rental growth rates in the U.S. residential rental real estate market, demographic trends and the markets in which the REDT intends to operate; fluctuations in interest rates; litigation risks; the relative illiquidity of real property investments; the U.S. economic environment; the geographic concentration of the REDT's business; natural disasters and severe weather; demand levels for residential rental properties in Tampa, Florida and Orlando, Florida, respectively, and local economic conditions; negative geopolitical events; public health crises; the capital structure of the REDT; distributions; capital depletion; foreign currency exchange rates and assumptions related thereto; potential conflicts of interest; reliance on the good faith and ability of the manager of the REDT to manage and operate the Projects; reliance on other third-party property management companies; the limited operating history of the REDT; the limited liquidity of the Units; and tax laws. While management of the REDT considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.

Although management believes the expectations reflected in such forward-looking statements are reasonable and represent the REDT's internal projections, expectations and beliefs at this time, such statements involve known and unknown risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the REDT's control, could cause actual results in future periods to differ materially from current expectations of estimated or anticipated events or results expressed or implied by such forward-looking statements. Such factors include the risks identified in the REDT's final prospectus, including under the heading "Risk Factors" therein. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the REDT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Additional information regarding Lantower Residential Real Estate Development Trust (No. 1) is available at www.lantowerredt.com and on www.sedarplus.com.

SOURCE Lantower Residential Real Estate Development Trust (No. 1)