AIP Realty Trust Closes Non-Brokered Offering of Preferred Units

AIP Realty Trust (AIP.U) has successfully closed a non-brokered private placement, raising US$2,600,000 through the issuance of 5,200,000 Preferred Units – Series B Convertible at a price of US$0.50 per Preferred Unit. This capital raise will fund the costs associated with the proposed business combination with AllTrades Industrial Properties, LLC, including audit fees, legal fees, preparation of necessary documentation, and due diligence costs. The completion of this offering strengthens AIP's financial position and liquidity, enabling it to pursue its strategic objectives more effectively.

The strategic implications of this offering are significant. The proceeds will be used to fund the costs associated with the proposed business combination with AllTrades Industrial Properties, LLC, which is expected to generate a substantial and long-term pipeline of properties to be financed and purchased by AIP. By completing this business combination, AIP will gain exclusive rights to finance the development of and to purchase all the completed and leased properties built across North America by AllTrades. This will allow AIP to expand its portfolio of light industrial flex facilities, which are in high demand due to the growing needs of small businesses and the trades and services sectors in high-growth markets in the U.S.



The strategic implications of this transaction include:

1. Expansion of AIP's Portfolio: By acquiring AllTrades' properties, AIP will be able to expand its portfolio of light industrial flex facilities, which are designed to address the long-overlooked needs of small businesses and the trades and services sectors. This will allow AIP to tap into a growing market and increase its revenue streams.
2. Exclusive Rights: AIP will hold exclusive rights to finance the development of and to purchase all the completed and leased properties built across North America by AllTrades. This exclusivity will give AIP a competitive advantage in the market and ensure a steady pipeline of properties to acquire.
3. Growth Opportunities: The acquisition of AllTrades' properties will provide AIP with significant growth opportunities. With an initial focus on the Dallas-Fort Worth market, AIP plans to roll out this innovative property offering nationally, expanding its reach and increasing its market share.
4. Upside Potential: The structured nature of the transaction enables investors to realize a portion of the upside from the development stage while still mitigating risk. This is an attractive proposition for investors looking to capitalize on the growth potential of the light industrial flex real estate market.
5. Strengthening Relationship with AllTrades: The business combination will further strengthen the relationship between AIP and AllTrades, their exclusive development and management partner. This partnership has proven successful in the past, with AllTrades continuing to build, deliver, and lease new assets despite unstable times in the debt and capital markets.

In conclusion, the completion of the non-brokered offering of preferred units is a strategic move that aligns with AIP's growth objectives. This transaction will allow AIP to expand its portfolio, gain exclusive rights to a pipeline of properties, and capitalize on the growth potential of the light industrial flex real estate market.