Toronto, Ontario--(Newsfile Corp. - October 22, 2024) - Telsec Property Corporation ("Telsec"), a corporation controlled by Dick Van Grieken, announced that it has filed an early warning report related to an acquisition of 50,000 trust units ("Trust Units") of Melcor Real Estate Investment Trust ("Melcor") completed on October 21, 2024 through the facilities of the Toronto Stock Exchange at an average price of $4.8917 per Trust Unit representing aggregate consideration of $244,585. Following the transaction Telsec owns 650,000 Trust Units, which when taken together with the 2,292,064 Trust Units held by Van Grieken family members, represent approximately 10.1% of the Trust Units of Melcor (approximately 9.9% prior to the acquisition) (in each case assuming the exchange of the Class B Limited partnership units of a subsidiary limited partnership of Melcor, which Class B units are economically equivalent to and exchangeable for Trust Units on a one-for-one basis). The holdings of Telsec on its own represent approximately 2.2% of the Trust Units (2.1% prior to the acquisition).

In connection with the recent going private transaction announced by Melcor on September 12, 2024, Telsec has begun to engage with and supports FC Private Equity Realty Management Corp. ("Firm Capital") in respect of its opposition to the proposed transaction. Firm Capital is the manager of certain entities that hold Trust Units. As a result of this relationship it is possible that Telsec and the entities managed by Firm Capital that hold Trust Units could be considered to be joint actors under applicable securities laws. Accordingly, out of an abundance of caution and in the interest of full transparency, the entities managed by Firm Capital own or control an aggregate of 544,730 Trust Units and hold $500,000 principal amount of debentures which are convertible into a total of 56,180 Trust Units and which when taken together with the Trust Units owned by Telsec and the Van Grieken family members, represents approximately 12.2% of the Trust Units (assuming the exchange of the Class B Limited partnership units of the subsidiary limited partnership of Melcor referred to above).

The Trust Units were acquired by Telsec for investment purposes. As does Firm Capital, Telsec believes that the consideration being offered for the Trust Units under the proposed going private transaction is not adequate and as such the Trust Units represent an attractive investment. Telsec, acting alone or together with entities managed by Firm Capital (or their affiliates), may acquire additional securities including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions or other relevant factors. Telsec, acting alone or together with entities managed by Firm Capital (or their affiliates), may also choose to exercise dissent rights in connection with the proposed going private transaction. Telsec and Firm Capital will continue to review options given their shared opposition to the proposed going private transaction.

This news release is being issued in accordance with National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues in connection with the filing of an early warning report dated October 22, 2024. A copy of the early warning report relating to the above will be available under Melcor's profile on the System for Electronic Document Analysis and Review ("SEDAR+") at . Melcor's head office address is located at 900, 10310 Jasper Av., Edmonton, Alberta, T5J 1Y8, Canada.

CONTACT INFORMATION

FOR MORE INFORMATION CONTACT: