Fourth Quarter 2012 Update to Adventus Realty Trust Unit Holders

February 20, 2013

Adventus Realty Trust (the Trust) is pleased to provide the fourth quarter 2012 update to our investors. In addition to reporting on the fourth quarter, we have recently won the bidding for our second property, located in suburban Chicago, and are in the process of closing on the acquisition. The Oak Brook Office Center in Oak Brook, Illinois, is to be acquired for approximately $33 million in the first week of March, 2013. This new property is a great compliment to our first property in Elgin, Illinois, and will benefit from using our key management people to operate both properties to enhance operating income.

We have concluded a purchase and sales agreement, concluded our due diligence, negotiated debt financing and made a non-refundable deposit of approximately $3.3M in order to secure this property. The Oak Brook Office Center is being acquired at a very attractive yield or capitalization rate (cap rate), in excess of 9%, and we feel there is a good chance to enhance its operating income as our team takes over operations.

Starting in November, 2013, pursuant to our 2nd term sheet financing, we focused on raising sufficient funds to acquire our second property and further our efforts to take Adventus public in 2013. As previously communicated, our plan is to raise funds of between $20-25M, as quickly as possible, to expedite this plan. As of the date of this release, we will have raised in excess of $12 million by February 28, 2013 in respect of our 2nd term sheet.

As we will likely require additional funding after February 28, 2013, for the acquisition of our third property and other 2013 pre-public financing requirements, we are reviewing a 3rd term sheet and fundraising for this term sheet would likely be done during March, 2013 to June, 2013. The Adventus directors are meeting shortly to set the subscription price for a 3rd round term sheet and expect to set pricing in March, 2013.

Recently, we initiated a refinancing process for the Elgin Chase Campus (our first property), as we have determined there is an opportunity to significantly improve cash flow for our investors. The Elgin Chase property continues to be a profitable acquisition for Adventus, but the current financing for it basically sweeps most of the cash profits being earned in the form of debt reduction. We expect, based on the current debt markets that we can refinance at much more attractive terms than what was available when we acquired the property.

After closing the acquisition of Oak Brook in early March, 2013, we will issue another news release then with more details. It is anticipated that with the acquisition of our second property, a number of significant opportunities will be made available to Adventus as the Chicago commercial real estate market recognizes Adventus as being a new, important investor in the local market, resulting from the acquisitions of both the Elgin and Oak Brook properties.
Later this month and continuing in early March, we are initiating our pursuit of 1-2 newly identified properties in Metro Chicago. We will provide a further update at the appropriate time.

Commencing in March, 2013 we are delighted to announce that Michael E. Iannacone, C.A. will be joining Adventus in the capacity of Chief Financial Officer. Mr. Iannacone has many years of experience with public listed companies and will bring this experience to Adventus as we continue with our pursuit of a TSX listing later this year. Please welcome Mike to the Adventus team.

Finally, we are making a 2% distribution (or 8% per annum) for the 4th quarter 2012, payable to unit holders of record as of December 31, 2012 and have commenced the process to distribute these amounts to unit holders on or about February 25, 2013. In this regard, we are also including in our mail out the December 31, 2012, financial statements of the Trust for your information.

We trust that our fourth quarter of operations, and second property acquisition have met the expectations of our unit holders. We continue to work diligently on your behalf to move Adventus forward towards our goals for profitable growth and becoming a publicly traded REIT.



Per: Rodney B. Johnston, FCA

Investors News Releases Fourth Quarter 2012 Update to Adventus Realty Trust Unit Holders