Dundee REIT Completes $75 Million Convertible Debenture Issue.

TORONTO -- DUNDEE REIT (TSX:D.UN) today announced that it has completed its previously announced public offering of $75,000,000 of 6.5% convertible unsecured subordinated debentures due June 30, 2014. The debentures were sold at par on a bought-deal basis through a syndicate of underwriters led by TD Securities Inc. and Scotia Capital Inc. The syndicate also included CIBC World Markets Inc., Dundee Securities Corporation, BMO Nesbitt Burns Inc., National Bank Financial Inc., Trilon Securities Corporation and HSBC Securities (Canada) Inc.

The net proceeds of the offering will be used to fund the recently announced acquisition of a 323,000 square foot portfolio located within Technoparc Saint-Laurent in the Montreal region, if that acquisition is completed, and for general purposes, including to repay indebtedness and for funding possible future acquisitions.

The debentures have not been and will not be registered under the United States Securities Act of 1933 and accordingly will not be offered, sold or delivered, directly or indirectly, within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of, a U.S. person, except in limited circumstances.

Dundee REIT is an unincorporated, open-ended real estate investment trust. We are a provider of high quality, affordable business premises. We focus on owning, acquiring, leasing and managing mid-sized urban and suburban office and industrial properties in Canada. Our diversified portfolio consists of approximately 13.4 million square feet of gross leasable area, located primarily in our target markets of Toronto, Ottawa, Montreal, Calgary and Edmonton. Our portfolio is well diversified by asset type, geographic location and tenant mix. For more information, please visit http://www.dundeereit.com.