Fri Sep 13 00:56:00 UTC 2024: ## Melcor to Acquire Remaining Stake in Melcor REIT, Unitholders to Receive $4.95 per Unit

**EDMONTON, Alberta – September 12, 2024** – Melcor Developments Ltd. (TSX: MRD) announced today that it will acquire its remaining 45% stake in Melcor Real Estate Investment Trust (TSX: MR.UN) for $4.95 per unit in cash. This move will bring Melcor’s income property portfolio back under its full ownership.

The transaction, which includes the repurchase and cancellation of all outstanding Trust Units, represents a 46.0% premium to the REIT’s closing unit price on September 12, 2024. Melcor will also redeem and pay out in cash all $46.0 million of the REIT’s 5.10% convertible unsecured subordinated debentures.

The REIT’s Board of Trustees, based on the recommendation of an independent committee, unanimously recommended that unitholders vote in favor of the transaction.

Timothy Melton, Melcor’s Executive Chair and Chief Executive Officer, stated, “This significant and strategic transaction will bring Melcor’s income property portfolio back under Melcor’s full ownership.”

Richard Kirby, Trustee of the REIT and Chair of the Independent Committee, commented, “This important transaction maximizes value for REIT Unitholders.”

The transaction is structured as a statutory plan of arrangement and is expected to be completed in the fourth quarter of 2024, subject to customary closing conditions including court approval and unitholder approval.

Melcor will have a 30-day go-shop period to allow the REIT to solicit third-party interest in submitting a superior proposal.

Following the completion of the transaction, Melcor will hold a 100% effective ownership interest in the REIT. The Trust Units and the Debentures will cease to be listed on the TSX.

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