An anonymous director reports

MELCOR REIT AND MELCOR DEVELOPMENTS ANNOUNCE SUPPORT OF ARRANGEMENT BY TELSEC AND FIRM CAPITAL

Melcor Developments Ltd. (Melcor) and Melcor Real Estate Investment Trust have entered into voting support agreements with each of Telsec Property Corp., Richard Van Grieken, Bonnie Van Grieken and Kris Van Grieken, and FC Private Equity Realty Management Corp. and its affiliates, in connection with Melcor's proposed acquisition of Melcor REIT.

As previously announced, Melcor REIT and Melcor entered into an amended and restated arrangement agreement dated Nov. 24, 2024, with Melcor REIT GP Inc. Pursuant to the terms of the amended agreement, Melcor has committed to acquire its unowned equity interest (approximately 45 per cent) in Melcor REIT Limited Partnership for $5.50 per unit in cash consideration, which is a 55-cent-per-unit increase (11 per cent) over the prior consideration. Melcor's unowned equity interest in REIT LP comprises all REIT LP's outstanding Class A LP units (approximately 13.0 million units). In accordance with the arrangement, the REIT will use the proceeds from the REIT LP sale to repurchase and cancel all of the REIT's outstanding participating trust units. Further, the amended agreement included a new and extended 90-day "go-shop" period.

Pursuant to the voting support agreements, each of the Telsec Group and the FC Group have, among other things, agreed to vote (or cause to be voted) all of the trust units owned by them, or over which they have control or direction, in favour of the arrangement at the special meeting of Melcor REIT unitholders currently scheduled for April 11, 2025. The voting support agreements contain customary representations, warranties, covenants and termination provisions for agreements of this nature.

The Telsec Group and the FC Group collectively own or exercise control or direction over approximately 4,057,515 trust units.

The description of the terms of the voting support agreement contained herein is a summary only and is qualified in its entirety by the terms of the voting support agreement, which will be filed on SEDAR+ in due course.

About Melcor REIT

Melcor REIT is an unincorporated, open-ended real estate investment trust. Melcor REIT owns, acquires, manages and leases quality retail, office and industrial income-generating properties in Western Canada. Its portfolio is currently made up of interests in 34 properties representing approximately 2.8 million square feet of gross leasable area located across Alberta and in Regina, Sask.

About Melcor Developments Ltd.

Melcor is a diversified real estate development and asset management company that transforms real estate from raw land through to high-quality finished product in both residential and commercial built form. Melcor develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centres and golf courses. Melcor owns a well-diversified portfolio of assets in Alberta, Saskatchewan, British Columbia, Arizona and Colorado.

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