TORONTO -- (Business Wire)

Inovalis Real Estate Investment Trust (the “REIT”) (TSX: INO.UN) announced today 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% interest in the property through a joint venture. The Court has confirmed a tax liability of approximately €5.888 million ($9.294 million) , 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 funding 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 million ($6.635 million) 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.

FORWARD-LOOKING INFORMATION

About Inovalis REIT

Inovalis REIT is a real estate investment trust listed on the Toronto Stock Exchange in Canada. It was founded in 2013 by Inovalis and 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.

About Inovalis Group

Inovalis S.A. is a French Alternative Investment fund manager, authorized by the French Securities and Markets Authority (AMF) under AIFM laws. Inovalis S.A. and its subsidiaries (Advenis S.A., Advenis REIM) invest in and manage Real Estate Investment Trusts such as Inovalis REIT, open ended funds (SCPI) with stable real estate focus such as Eurovalys (for Germany) and Elialys (Southern Europe), Private Thematic Funds raised with Inovalis partners to invest in defined real estate strategies and direct Co-investments on specific assets

Inovalis Group (www.inovalis.com), founded in 1998 by Inovalis SA, is an established pan European real estate investment player with EUR 7 billion of AuM and with offices in all the world's major financial and economic centers in Paris, Luxembourg, Madrid, Frankfurt, Toronto and Dubai. The group is comprised of 300 professionals, providing Advisory, Fund, Asset and Property Management services in Real Estate as well as Wealth Management services.

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Contacts:

Stephane Amine, President and Chief Executive Officer
Inovalis Real Estate Investment Trust
Tel: +33 1 5643 3315
stephane.amine@inovalis.com

Khalil Hankach, Chief Financial Officer
Inovalis Real Estate Investment Trust
Tel: +33 1 5643 3313
khalil.hankach@inovalis.com

Source: Inovalis Real Estate Investment Trust