Sun Residential Real Estate Investment Trust Announces Upsize to Previously Announced Private Placement

Toronto, Ontario--(Newsfile Corp. - November 26, 2019) - Sun Residential Real Estate Investment Trust (TSXV: SRES.P) ("SunREIT"), a capital pool company, as such term is defined by TSXV Policy 2.4 - Capital Pool Companies ("Policy 2.4"), is pleased to announce that it has amended the terms of its previously announced private placement offering (the "Offering") in connection with SunREIT's proposed "Qualifying Transaction" (as such term is defined by Policy 2.4).

Pursuant to the revised terms of the Offering, SunREIT has authorized an increase to the maximum number of trust units of SunREIT (the "Trust Units") to be issued pursuant to the non-brokered portion of the Offering, which will now comprise the issuance of a minimum of 32,478,261 Trust Units and a maximum of 97,695,652 Trust Units at a price of C$0.115 per Trust Unit for gross proceeds of between approximately C$3,735,000 and C$11,235,000. No changes are contemplated for the brokered portion of the Offering, which will continue to involve the issuance of a minimum of 70,130,435 Trust Units and a maximum of 97,956,522 Trust Units at a price of C$0.115 per Trust Unit for gross proceeds of between approximately C$8,065,000 and C$11,265,000.

The Offering is subject to TSXV approval and remains conditional upon, and is expected to occur concurrently with, the closing of the Qualifying Transaction.

For other details concerning the Offering and the Qualifying Transaction (with respect to the indirect acquisition by SunREIT of a controlling interest in a Tallahassee, Florida-based multi-family residential property (the "QT Property")), please refer to the news release of SunREIT dated November 14, 2019.

Selected Historical Unaudited Consolidated Financial Information of the QT Property

The following table sets forth selected historical unaudited consolidated financial information of the QT Property for the period indicated. Such selected historical unaudited consolidated financial information is based on certain assumptions and adjustments.

For more information please contact:

Gordon Wiebe
Chief Executive Officer
Sun Residential Real Estate Investment Trust
Email: gwiebe@corpfincapital.ca

The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward-looking statements. Forward-looking statements in this news release include, but are not limited to, the ability of SunREIT to complete the Offering and the Qualifying Transaction. Any number of factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although SunREIT believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. Except as required by law, SunREIT disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Qualifying Transaction, any information released or received with respect to the Qualifying Transaction may not be accurate or complete and should not be relied upon.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the Qualifying Transaction and has neither approved nor disapproved the contents of this news release.

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

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