Artis Announces $150 Million Equity Offering and Announces New US$68.8 Million Industrial and Office Property Acquisitions an...

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


Artis Real Estate Investment Trust (TSX:AX.UN) ("Artis" or the "REIT") announced
today that it has entered into an agreement to sell to a syndicate of
underwriters led by RBC Capital Markets, CIBC and Canaccord Genuity Corp. (the
"Underwriters"), on a bought deal basis, 9,065,000 trust units ("Units") at a
price of $16.55 per Unit for gross proceeds to Artis of $150,025,750 (the
"Financing"). Artis has also granted the Underwriters an option, exercisable at
any time up to 48 hours prior to the closing of the Financing, to purchase a
further 1,359,750 units at the issue price which, if fully exercised, would
result in additional gross proceeds of $22,503,863.


The Financing is being made pursuant to the REIT's base shelf prospectus dated
June 15, 2012. The terms of the offering will be described in a prospectus
supplement to be filed with Canadian securities regulators. The Financing is
expected to close on or about May 9, 2013 and is subject to regulatory approval.


Artis intends to use the net proceeds to fund future acquisitions, including
those outlined below, for debt repayment and for general trust purposes.


This press release shall not constitute an offer to sell, or the solicitation of
an offer to buy, any securities in any jurisdiction. The Units being offered
have not been and will not be registered under the U.S. Securities Act of 1933
and state securities laws. Accordingly, the Units may not be offered or sold to
U.S. persons except pursuant to applicable exemptions from registration
requirements.


New Acquisitions

Artis has entered into an unconditional agreement to acquire the Quarry Park
Portfolio, a 282,327 square foot portfolio of Class A LEED Gold certified office
buildings located in Calgary, Alberta. The three portfolio properties, which
were constructed between 2010 and 2013, include 663 surface stalls and 315
underground parking stalls, for a parking ratio of 3.5 stalls per 1,000 square
feet of leasable area. All three properties are located in Quarry Park, a new
mixed use development well-located with proximity and quick access to Deerfoot
Trail and Glenmore Trail, two of Calgary's highest volume transportation
corridors. The Quarry Park Portfolio is 100% occupied by publically traded
companies and government tenants, including Alberta Health Services, Telvent
Canada Ltd., and Stantec Consulting Ltd., with a weighted-average lease term to
maturity of 9.6 years. The purchase price for this portfolio is $154.9 million
financed with cash, by way of the assumption of a $23.9 million mortgage
maturing in 2016 and bearing interest at 3.0% per annum, and from the proceeds
of two new ten-year mortgages totaling $57.5 million and bearing interest at an
annual rate of 3.77%. The closing is anticipated to occur on May 8, 2013. 


Artis has entered into an unconditional agreement to acquire a 50% interest in
1700 Broadway, a 394,151 square foot, 22 floor office building located in
Denver, Colorado. Located in the desirable Uptown submarket of the Central
Business District, this property has 24 tenants ranging in size from 725 square
feet to 173,000 square feet and is 95.0% occupied. Major tenants in the building
include Whiting Oil and Gas Corporation, State of Colorado - Secretary of State,
and Ensign US Drilling, Inc. who collectively occupy over 62% of the property.
1700 Broadway has exclusive rights to an 827 stall parking garage, providing a
parking ratio of 2.1 stalls per 1,000 square feet. Artis' partner for the
remaining 50% interest is MDC Realty Advisors USA Inc. ("MDC"), acting on behalf
of private investors as their advisor. The ownership group will retain MDC's
affiliate Hannay Realty Advisors as property manager for this project. With the
addition of 1700 Broadway, Hannay Realty Advisors will have approximately 4.0
million square feet under management in the Denver area and over 12.0 million
square feet under management in its overall portfolio. Hannay Realty Advisors
has offices in Phoenix, Denver, Las Vegas and Orange County. The closing is
anticipated to occur on May 22, 2013.


Artis has entered into an unconditional agreement to acquire ASM America
Headquarters Building, a 130,282 square foot Class A industrial/office building
located in the Southbank Business Park, a premier industrial park near Sky
Harbor International Airport in Phoenix, Arizona. This property is 100% leased
to ASM America, Inc. Since the building's construction in 1997, it has benefited
from significant tenant investments and improvements, making it a "mission
critical" facility for the tenant. ASM America Inc. is a subsidiary of ASM
International N.V., which is a publicly traded global supplier of semiconductors
with a market capitalization of $2.2 billion and a S&P rating of BB- (stable).
ASM International N.V. is the guarantor of the lease, which was recently renewed
until 2021, and provides for periodic rent escalations over the lease term. The
closing is anticipated to occur on May 31, 2013. 


The U.S. properties are being acquired for an aggregate of US$68.8 million, and
will be financed with cash, and US$24.5 million of new ten-year mortgage
financing bearing interest at 3.11% per annum. The weighted-average
capitalization rate of all of the new acquisitions is 6.32%. 


Previously Announced Acquisitions

Artis has entered into unconditional agreements to purchase the following
commercial properties in Canada for an aggregate purchase price of $92.7
million, which represents a weighted-average capitalization rate of 6.4%. The
purchase prices will be settled with cash on hand and from the proceeds of new
ten-year mortgage financing aggregating $25.0 million bearing interest at an
annual rate of 3.8%. Additional financing arrangements are underway at rates yet
to be determined. 




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                                            Owned                           
Property                                 Share of    Purchase    Anticipated
 Name        City, Province Asset Class       GLA       Price   Closing Date
----------------------------------------------------------------------------
220 Portage                                                                 
 Avenue(1)     Winnipeg, MB      Office   170,158 $41,000,000 April 30, 2013
----------------------------------------------------------------------------
PTI                                                                         
 Building(2)    Acheson, AB  Industrial    71,654 $20,900,000      May, 2013
----------------------------------------------------------------------------
Cara Foods                                                                  
 Building(3)    Vaughan, ON      Office    50,199 $21,000,000   June 5, 2013
----------------------------------------------------------------------------
Century                                                                     
 Crossing     Spruce Grove,                                                 
 III(4)                  AB      Retail    90,736  $9,750,000   July 1, 2013
----------------------------------------------------------------------------
(1) Artis will purchase a 100% interest in the property in two separate 50% 
    interest transactions closing concurrently.                             
(2) Artis will acquire the building on completion of construction and       
    commencement of the tenant lease. The date is yet to be determined but  
    is anticipated to be in mid-May.                                        
(3) Artis currently owns a 50% interest in the property, representing 50,199
    square feet, and has entered into an unconditional agreement to purchase
    the remaining 50,199 square feet. The total building size is 100,398    
    square feet.                                                            
(4) This property was purchased on February 7, 2013. The balance of the     
    purchase price outstanding is estimated to be $9.75 million, subject to 
    adjustments, and is scheduled to be paid on July 1, 2013.               



Artis is a diversified Canadian real estate investment trust investing in
office, industrial and retail properties. Since 2004, Artis has executed an
aggressive but disciplined growth strategy, building a portfolio of commercial
properties in Canada and the United States, with a major focus on Western
Canada. Artis' commercial property comprises nearly 23.7 million square feet of
leasable area in 223 properties. Leasable area by asset class is approximately
18.5% retail, 32.1% office and 49.4% industrial. The portfolio is located 7.8%
in British Columbia, 25.8% in Alberta, 5.5% in Saskatchewan, 15.2% in Manitoba,
16.2% in Ontario and 29.5% in the U.S.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Artis Real Estate Investment Trust
Mr. Armin Martens
President and Chief Executive Officer
1.204.947.1250


Artis Real Estate Investment Trust
Mr. Jim Green
Chief Financial Officer
1.204.947.1250


Artis Real Estate Investment Trust
Ms. Kirsty Stevens
Chief Administrative Officer
1.204.947.1250


Artis Real Estate Investment Trust
Suite 300 - 360 Main Street
Winnipeg, MB R3C 3Z3
1.204.947.1250
1.204.947.0453 (FAX)
www.artisreit.com