Dundee International REIT announces update on Deutsche Post's 2014 termination rights

Dundee International REIT announces update on Deutsche Post's 2014 termination 
This news release contains forward looking information that is based upon 
assumptions and is subject to risks and uncertainties as indicated in the 
cautionary note contained within this press release. 
pleased to provide an update with respect to Deutsche Post's 2014 lease 
termination rights in respect of 59 properties. 
Of the total 1.9 million square feet of gross leasable area ("GLA") subject to 
Deutsche Post's 2014 termination rights, Dundee International REIT ("REIT") 
has leased or entered into negotiations to lease, sell or redevelop 
approximately 1.3 million square feet, or 67% of the total space subject to 
In June 2013, the REIT and Deutsche Post agreed to extend Deutsche Post's 
termination rights in respect of 54 buildings to August 31, 2013 in order to 
find a mutually beneficial way to address Deutsche Post's future space 
requirements. The REIT is pleased to announce that Deutsche Post has agreed to 
continue to lease approximately 764,000 square feet, or 74% of the space it 
occupies in the 54 buildings, beyond June 30, 2014. Of the 764,000 square 
feet, Deutsche Post has agreed to amend its leases for approximately 619,000 
square feet by extending the term of such leases for 5 years commencing July 
1, 2014 and to waive its 2014 termination rights with respect to the balance 
of such space. 
As previously described in our press release dated June 24, 2013, the REIT had 
received notice of termination in respect of 5 properties representing 613,000 
square feet of space effective July 1, 2014. Of the space terminated by 
Deutsche Post in these properties, approximately 261,000 square feet, or 43%, 
has already been leased, is in lease negotiations, or has been identified for 
redevelopment or sale. 
The REIT is presently in discussions with Deutsche Post to lease back 
additional terminated space. As well, the REIT is in discussions with Postbank 
to remain as a direct tenant in a large number of the locations in which 
Postbank presently sublets space from Deutsche Post. If these discussions are 
successful, the REIT expects to lease an additional 258,000 square feet of the 
terminated space within 90 days. 
After factoring in the Deutsche Post leases, asset planning activities 
including active lease discussions, planned sales and redevelopment, this 
leaves 641,000 square feet of space, or only 4% of the REIT's total GLA, to be 
addressed by the REIT. 
CEO Jane Gavan commented: "We are pleased with the outcome of the negotiations 
with Deutsche Post and with the terms of the agreement reached between us, 
which we believe are beneficial to both parties. By working with Deutsche Post 
over the past few years we were able to generate better solutions to their 
needs that work for us as well. As a result of these efforts, we have retained 
them as a tenant in many of our properties for extended terms which will mean 
greater cash flow stability and value creation. We are pleased that by dealing 
with Deutsche Post pro-actively, we have retained them as a tenant in 
approximately three times more space than they retained in 2012." 
As part of the overall deal, the REIT has also agreed to provide Deutsche Post 
with an annual rent reduction of €1.7 million per year, effective as of July 
1, 2014. Based on recent inflation rates in Germany, we anticipate that prior 
to July 1, 2014 this reduction in annual rent will be substantially offset by 
CPI rent adjustments provided in the terms of the Deutsche Post leases. In 
addition, the REIT will make a one-time payment to Deutsche Post of €1.45 
million to be used to improve the buildings and the tenant's space. 
The following table is a summary of the foregoing: 
Deutsche Post 2014 Termination                           GLA % of 
                                            (in sq. ft.) total 
Total subject to 2014 termination      
rights                                             1,924,306  100% 


Deutsche Post 5-year lease             
extension                               619,381                   

Deutsche Post waiver of 2014            144,951
termination rights                                                
                                                     764,332   40%

Space terminated in June                                          
    Redevelopment under                                           
    negotiation                         203,250             
    Dispositions under                                            
    negotiation                          39,022             
    Completed leases                     18,986                   
                                                     261,258   14%

Space subject to active lease          
negotiations                                         258,163   13%

Space addressed or in                                          67%
progress                                           1,283,753

Space left to redevelop, re-lease      
or dispose                                           640,553   33%

"The REIT's team in Germany has developed a focused, asset-by-asset strategy 
which, together with today's agreement with Deutsche Post, and ten months in 
advance of the effective termination, already addresses over two-thirds of the 
GLA that was subject to the 2014 terminations. I have full confidence in our 
German team, who will continue to look for and execute on opportunities to 
maximize value within our Deutsche Post portfolio." said Jane Gavan, CEO.

Dundee International REIT is an unincorporated, open-ended real estate 
investment trust that provides investors with the opportunity to invest in 
commercial real estate exclusively outside of Canada. Dundee International 
REIT's portfolio currently consists of approximately 15.4 million square feet 
of gross leasable area of office, industrial and mixed use properties across 
Germany. For more information, please visit www.dundeeinternational.com.

This press release contains forward-looking information within the meaning of 
applicable securities legislation. This information can be identified by the 
use of words such as "may", "will", "would", "expect", "anticipate", "believe" 
or "continue" or the negative thereof or similar variations. The actual 
results and performance could differ materially from those expressed or 
implied by such information. Forward-looking information is based on a number 
of assumptions and is subject to a number of risks and uncertainties, many of 
which are beyond Dundee International REIT's control that could cause actual 
results to differ materially from those that are disclosed in or implied by 
such forward-looking information. These risks and uncertainties include, but 
are not limited to, global and local economic and business conditions; the 
financial condition of tenants; our ability to refinance maturing debt; 
leasing risks, including those associated with the ability to lease vacant 
space; and interest and currency rate functions. Forward-looking information 
is also based on certain assumptions, including that the Canadian and German 
economies remain stable, interest rates remain stable, conditions within the 
real estate market remain consistent and competition for acquisitions remains 
consistent with the current climate. All forward-looking information in this 
press release speaks as of the date of this press release. Dundee 
International REIT does not undertake to update any such forward-looking 
information whether as a result of new information, future events or 
otherwise. Additional information about these assumptions and risks and 
uncertainties is contained in Dundee International REIT's filings with 
securities regulators, including its latest annual information form and MD&A. 
These filings are also available at Dundee International REIT's website at 

SOURCE  Dundee International REIT 
please contact: 
P. Jane Gavan President and Chief Executive Officer (416) 365-6572 
Rene D. Gulliver Chief Financial Officer (416) 365-5447 
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CO: Dundee International REIT
ST: Ontario
-0- Sep/03/2013 12:37 GMT
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