Mr. Khalil Hankach reports

INOVALIS REAL ESTATE INVESTMENT TRUST PROVIDES UPDATE ON ARCUEIL WITHHOLDING TAX MATTER AND APPEAL

Inovalis Real Estate Investment Trust has been notified that the Paris administrative court has issued a ruling regarding withholding tax reassessments related to the Arcueil property for the 2017 to 2019 taxation years, during which the REIT held a 25-per-cent interest in the property through a joint venture. The court has confirmed a tax liability of approximately 5,888,000 euros ($9,294,000), including principal, penalties and interest.

A formal payment notice has been issued by the French tax authority.

The REIT expects additional late-payment interest to accrue until settlement. The REIT has obtained approval for a 12-month instalment plan from the tax authority. The REIT anticipates providing financing to its subsidiary to facilitate compliance with the payment schedule. This judgment may require the REIT to apply proceeds from planned asset sales or other financing measures to meet related obligations.

The REIT has filed an appeal claiming to recover 4,116,000 euros ($6,635,000) related to withholding taxes upon submission of documentation supporting the tax residency of CanCorpEurope Luxembourg (the REIT's subsidiary) and the joint venture partner's status as a regulated entity in Korea. There can be no assurance as to the outcome of the appeal process. The appeal does not suspend the requirement to satisfy the payment obligations.

About Inovalis Real Estate Investment Trust

Inovalis is a real estate investment trust founded in 2013. It invests in office properties in primary markets of France, Germany and Spain. It holds 11 assets. Inovalis REIT acquires (indirectly) real estate properties via CanCorpEurope, authorized Alternative Investment Fund (AIF) by the CSSF in Luxemburg, and managed by Inovalis S.A.

We seek Safe Harbor.