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Early Warning News Release Pursuant to Section 5.2(3) of National Instrument 62-104 and National Instrument 62-103

WARRANTS TO ACQUIRE UNITS OF PRO REAL ESTATE INVESTMENT TRUST EXPIRE

TORONTO , March 31, 2017 /CNW/ - Further to disclosure requirements of applicable securities laws, Lotus Crux REIT LP ("Lotus Crux") announces that the 1,087,000 trust unit purchase warrants ("Unit Warrants") exercisable for trust units ("Units") of Pro Real Estate Investment Trust (the "REIT") and the 369,565 class B limited partnership unit purchase warrants ("Class B LP Warrants", and together with the Unit Warrants, the "Warrants") exercisable for class B limited partnership units ("Class B LP Units") of PRO REIT Limited Partnership ("PRO REIT LP") previously acquired by Lotus Crux have expired as of March 31, 2017 in accordance with their terms. The expiry of the Warrants decreases Lotus Crux's ownership interest in the issued and outstanding Units of the REIT to approximately 8.04%.

Immediately prior to the expiry of the Warrants, together with any joint actors, Lotus Crux held an aggregate of 2,393,600 Units of the REIT, 1,087,000 Unit Warrants, 1,457,511 Class B LP Units of PRO REIT LP, and 369,565 Class B LP Warrants which collectively represented approximately 10.76% of the issued and outstanding Units on a partially diluted basis, assuming the exercise of the Warrants, and the exchange of all outstanding Class B LP Units of PRO REIT LP for Units on a one-for-one basis in accordance with and subject to the terms and conditions of exchange agreement of the REIT dated March 11, 2013 (the "Exchange Agreement").

Immediately following the expiry of the Warrants, together with any joint actors, Lotus Crux held an aggregate of 2,393,600 Units of the REIT and 1,457,511 Class B LP Units of PRO REIT LP which collectively represent approximately 8.04% of the issued and outstanding Units, assuming the exchange of all outstanding Class B LP Units of PRO REIT LP for Units on a one-for-one basis in accordance with, and subject to, the terms and conditions of the Exchange Agreement.

Lotus Crux, the REIT and PRO REIT LP previously entered into a support agreement (the "Support Agreement") which grants Lotus Crux certain nomination rights. Lotus Crux and/or one or more of its related entities may, subject to the terms of the Support Agreement, depending on market and other conditions, increase or decrease its beneficial ownership, control or direction over Units of the REIT through market transactions, private agreements, property acquisition transactions, treasury issuances, grants pursuant to equity based compensation arrangements, convertible securities or otherwise.

The REIT is listed on the TSX Venture Exchange under the symbol "PVR.UN" with its head office located at 2000 Mansfield Street, Suite 920, Montreal, Quebec H3A 2Z6. Lotus Crux is a limited partnership organized in the province of Ontario and has its registered office at 5300 Commerce Court West, 199 Bay Street, Toronto, Ontario M5L 1B9. Its principal business is real estate investment holdings.

This news release is being issued as required by National Instrument 62-104 – Take-Over Bids and Issuer Bids and National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. Further information (including a copy of the early warning report to be filed on SEDAR) can be obtained at www.sedar.com under the REIT's company profile or by contacting Peter Aghar at 416-930-1756 or Shenoor Jadavji at 604-569-9982.

SOURCE Lotus Crux REIT LP


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