Mr. Jean Teasdale reports

NOBEL REIT ANNOUNCES THE ACQUISITION OF TWO PROPERTIES IN MONTREAL AND DECEMBER DISTRIBUTION

Nobel Real Estate Investment Trust has acquired two investment properties in the borough of Saint-Laurent of Montreal for a total of $10.65-million, excluding acquisitions costs.

The REIT acquired an industrial property comprising 114,265 square feet of gross leasable area, located on a 261,565-square-foot site area at 935, 965 rue Reverchon in the borough of Saint-Laurent in Montreal, Que., for a purchase price of $7.85-million, excluding acquisition costs. The occupancy of this property, located near the Pierre-Elliott-Trudeau International Airport, and highways 13 and 520, is 100 per cent, and the main tenants are Sierra Flower Trading Inc. and Litron Canada; the leases expire over a period ranging from March, 2017, to October, 2021. The effective capitalization rate of this acquisition is 6.96 per cent.

The REIT also acquired another industrial property, this one comprising 40,665 square feet of gross leasable area, located on a 101,353-square-foot site area at 3490 rue Griffith in the borough of Saint-Laurent in Montreal, Que., for a purchase price of $2.8-million, excluding acquisition costs. Fully leased, this property is also located near the Pierre-Elliott-Trudeau International Airport, and highways 13 and 520. The main tenants are NCS International and Jet Equipment & Tools; the leases expire over a period ranging from February, 2016, to July, 2018. The effective capitalization rate of this acquisition is 7.99 per cent.

These acquisitions were financed by a loan in the amount of $6.97-million, secured by a first ranking hypothec on the acquired properties, with the balance of the purchase price satisfied with part of the net proceeds of the second tranche private placement completed on Dec. 16, 2014. The secured loan bears interest at a fixed rate of 3.69 per cent for a five-year term, amortized over a period of 25 years; it was contracted from the Royal Bank of Canada.

Jean Teasdale, president and chief executive officer of Nobel REIT, commented: "With today's addition of two properties, the REIT now owns close to 400,000 square feet of gross leasable area, a growth of about 450 per cent from the same date last year. We intend to keep up the momentum and continue our growth in the coming months."

Distribution

Nobel REIT is also pleased to announce today a cash distribution of 0.0957 cent per trust unit of the REIT for the month of December, 2014, and that, even if 17.5 million units were issued during the month of December. The distribution will be payable on Jan. 15, 2015, to unitholders of record as at Dec. 31, 2014.

We seek Safe Harbor.