Mr. Daniel Drimmer reports

TRUE NORTH COMMERCIAL REAL ESTATE INVESTMENT TRUST COMPLETES PREVIOUSLY ANNOUNCED TRANSFORMATIVE ACQUISITIONS

True North Commercial Real Estate Investment Trust has closed the previously announced acquisitions of 10 office properties in two separate transactions from two arm's-length vendors for a total purchase price of approximately $60.8-million. The acquisitions, together with the previously announced acquisition of 777 Brock Rd. in Pickering, Ont., are immediately accretive to the REIT's funds from operations (FFO) per trust unit of the REIT and adjusted funds from operations (AFFO) per unit. The acquisitions will improve the REIT's FFO and AFFO payout ratios.

"The closing of these acquisitions represents an important milestone for the REIT," said Daniel Drimmer, the REIT's president, chief executive officer and chairman of the board. "We identified an opportunity to substantially increase the scale of the REIT's portfolio in the key Ontario market, while also improving our overall operating metrics. Equally important, we reinforced our unique market position by acquiring high-quality buildings in strong secondary markets, predominantly tenanted with either government or credit-rated organizations. By executing on these core strategies, we continue to enhance the stability of the REIT's cash flow."

The acquisition properties are predominantly located in secondary Ontario markets and comprise a total of approximately 240,600 rentable square feet. Together, the acquisition properties and the Brock Road property will increase the size of the REIT's portfolio by 38 per cent and increase the average remaining lease term of the REIT's property portfolio from 4.2 to 4.9 years. Further, in line with the REIT's unique value proposition, approximately 94.2 per cent of gross revenues of the acquisition properties and the Brock Road property is generated from the federal government of Canada, the provincial government of Ontario and credit-rated tenants.

The $83.4-million total purchase price of the acquisition properties and the Brock Road property represents an implied capitalization rate of 7.6 per cent and was satisfied by a combination of the following financing sources: i) approximately $22.7-million in cash; ii) the issuance to the vendors of certain acquisition properties of 833,333 Class B LP units of True North Commercial LP at $6.60 per Class B LP unit, representing, in total, approximately $5.5-million; iii) the assumption of approximately $17.4-million total principal amount of existing mortgage debt; iv) approximately $30.8-million total principal amount of new mortgage financing; v) the issuance of vendor take-back mortgages in the total amount of $4.1-million in respect of certain acquisition properties; and vi) the issuance of a promissory note in the amount of $2.9-million to a vendor of an acquisition property.

Additional details on the acquisitions are set out in the REIT's prospectus supplement dated Dec. 12, 2014, which is available on the REIT's profile at SEDAR.

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