Milestone Apartments REIT Announces Closing of Over-Allotment Option

Milestone Apartments Real Estate Investment Trust (REIT) announced the issuance of an additional 2.85 million units of the REIT at a price of $10.00 per unit for gross proceeds of $28.5 million.  The issuance was pursuant to the exercise of an over-allotment option granted to a syndicate of underwriters co-led by BMO Capital Markets and CIBC in connection with the REIT's recent initial public offering. BMO Capital Markets was the sole bookrunner on the transaction. The exercise of the over-allotment option increases the total gross proceeds of the REIT's initial public offering to $228,500,000.

The net proceeds of the over-allotment option will be used by the REIT to indirectly redeem 2,850,000 class B limited partnership units of Milestone Multifamily Investors L.P.  held by MileSouth Apartment Portfolio LP, an affiliated entity of Invesco Ltd. Following closing of the over-allotment option, MileSouth will hold 14,000,000 units of the REIT and 7,350,590 Class B Units (each of which are redeemable for REIT units) while MST Investors, LLC, an affiliate of The Milestone Group, LLC, will hold 5,513,675 Class B Units, representing an approximate 42.9% and 11.1% retained interest for MileSouth and MST Investors, respectively. TMG Partners, L.P., an affiliate of The Milestone Group, LLC, is the external asset manager of the REIT.

The units have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the units in the United States or to, or for the account or benefit of, U.S. Persons.

For further information:

Robert P. Landin, CEO
Milestone Apartments Real Estate Investment Trust
Tel: 214.561.1206
Fax: 214.561.1305

by Milestone Apartments Real Estate Investment Trust on March 26, 2013