Mr. Frank Camenzuli reports

AGELLAN COMMERCIAL REAL ESTATE INVESTMENT TRUST ANNOUNCES AGREEMENTS TO SELL A PORTION OF PARKWAY PLACE

Agellan Commercial Real Estate Investment Trust has entered into agreements with certain private purchasers to sell a portion of the REIT's Consumers Road office complex in Toronto, Ont. (Parkway Place).

The transaction involves the sale to the purchasers of the REIT's partnership interest in 165 Yorkland LP, a limited partnership created by the REIT to own and operate a car dealership and corporate head office at Parkway Place pursuant to a lease agreement with Porsche Cars Canada.

The transaction is expected to close during the second quarter of 2017 and is subject to numerous closing conditions, including the REIT substantially completing the construction of the dealership and the occupancy thereof by Porsche Cars Canada. There can be no assurance that all conditions to closing will be satisfied or waived.

The gross sale price for the transaction will be determined based on a capitalization rate applied to the annual minimum rent payable, as determined under the lease agreement with Porsche Cars Canada. Such gross sale price represents the fair value of the partnership as of today's date.

The disposition is consistent with the REIT's previously announced strategy of recycling capital by selling assets in certain markets that are no longer aligned with its core strategies to finance new investment opportunities. The REIT intends to focus on multitenant properties that provide enhanced diversity.

We seek Safe Harbor.