BSR Real Estate Investment Trust Announces Closing of Over-Allotment Option in Connection with the Recently Completed Convertible Debenture Offering

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

LITTLE ROCK, AR and TORONTO, Oct. 5, 2020 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") (TSX: HOM.U) (TSX: HOM.UN) announced today that it has completed the issue and sale of an additional US$2.5 million  aggregate principal amount of 5.00% convertible unsecured subordinated debentures due September 30, 2025 ("Debentures") pursuant to the partial exercise of the over-allotment option granted to a syndicate of underwriters led by BMO Capital Markets in connection with BSR's recently completed bought deal offering of US$40 million aggregate principal amount of Debentures (the "Public Offering"). The sale of the additional Debentures brings the aggregate gross proceeds of the Public Offering to US$42.5 million.  

The Debentures were offered in each of the provinces and territories of Canada pursuant to the REIT's base shelf prospectus dated November 8, 2019. The terms of the Public Offering are described in a prospectus supplement dated August 31, 2020 filed with Canadian securities regulators. A copy of the prospectus supplement is available under the REIT's profile on the SEDAR website at www.sedar.com.

The Debentures have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the "1933 Act") 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 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any Debentures in the United States or to, or for the account or benefit of, U.S. persons.

ABOUT BSR REAL ESTATE INVESTMENT TRUST

BSR Real Estate Investment Trust is an internally managed, unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT owns a portfolio of multifamily garden-style residential properties located in attractive primary and secondary markets in the Sunbelt region of the United States.

Additional information about the REIT is available at www.bsrreit.com or www.sedar.com.

SOURCE BSR Real Estate Investment Trust