Mr. Tom Heslip reports

GRANITE REIT ANNOUNCES ACQUISITION OF US$68.75 MILLION PORTFOLIO IN THE UNITED STATES

Granite Real Estate Investment Trust has agreed to purchase three properties from subsidiaries of Ingram Micro Inc. for a total purchase price of $68.75-million (U.S.).

The portfolio includes two state-of-the-art logistics-distribution facilities in Plainfield (Indianapolis), Ind., totalling 1,033,520 square feet, at a purchase price of $65.45-million (U.S.). The buildings are 533,520 square feet and 500,000 square feet, include a total of approximately 140,000 square feet of finished office space, and were constructed in 2009 and 1999, respectively. Ingram Micro will continue to occupy the premises and will enter into leases for an initial term of 10 years. Ingram Micro delivers a full spectrum of global technology and supply chain services to businesses around the world. Deep expertise in technology solutions, and mobility, cloud and supply chain solutions, enables Ingram Micro's business partners to operate efficiently and successfully in the markets they serve. The investment represents an in-going yield of approximately 6.5 per cent.

As part of the transaction, Granite has also agreed to purchase 29 acres of adjacent expansion/development land in the AllPoints Midwest Business Park at a purchase price of $3.3-million (U.S.). The development lands provide for up to 585,000 square feet of additional new logistics-industrial space.

The investment will be financed with Granite's line of credit and cash on hand. The transaction is scheduled to close on or about Dec. 30, 2014, subject to customary closing conditions.

We seek Safe Harbor.