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Client Work

REIT INDEXPLUS Income Fund closes US$179 million IPO

Fasken
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REIT INDEXPLUS Income Fund and Middlefield Limited

On April 20, 2011, REIT INDEXPLUS Income Fund (the "Fund") completed its initial public offering of 14,600,000 units at a price of $12.00 per unit for gross proceeds of $175,200,000. On May 17, 2011, the Fund completed the issuance of additional units for total gross proceeds of $3,900,000 pursuant to the over-allotment option granted to the agents. In total, the Fund raised aggregate gross proceeds of $179,100,000. The Fund has been designed to provide investors with low-cost exposure to the real estate sector through a combination of indexing and active portfolio management. At least 50% and up to 80% of the Fund's assets will be invested in a diversified portfolio of securities which is designed to track, to the extent practicable, the S&P®/TSX™ Capped REIT Index. The remainder of the Fund's assets will be invested in an actively managed diversified portfolio of issuers operating primarily in the Canadian real estate sector, including the securities of REITs and other real estate issuers not in the Index as well as the securities of global REITs and real estate companies. Middlefield Capital Corporation will act as the investment advisor to the Fund. The offering was made through a syndicate of agents co-led by CIBC World Markets Inc. and RBC Capital Markets and included Scotia Capital Inc., TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., HSBC Securities (Canada) Inc., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Private Wealth Inc., Raymond James Ltd, Middlefield Capital Corporation, Dundee Securities Ltd., Mackie Research Capital Corporation and Wellington West Capital Markets Inc. The Fund and its manager, Middlefield Limited, were advised in this transaction by Fasken Martineau with a team led by Stephen Erlichman and that included John Sabetti and Daniel Fuke (securities) and Mitchell Thaw (tax).

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