CHC Student Housing Announces Refinancings

Toronto, Ontario--(Newsfile Corp. - July 13, 2018) - CHC Student Housing Corp. (TSXV: CHC) ("CHC" or the "Company") is pleased to announce the closing of refinancing transactions on its properties in London, Ontario and Trois-Rivières, Québec.

Under the London, Ontario property refinancing, an arm's length third party has assumed the existing $33.0 million first mortgage on the property, and the first mortgage has been amended to bear interest at a rate of 90 day Bankers Acceptances plus 2.55% (currently 1.85% for a total interest rate of 4.4%), and to have a maturity date of June 30, 2021. Halmont Properties Corporation ("Halmont") (TSXV: HMT), also an arm's length third party, has assumed the existing $13.75 million second mortgage on the property, and the second mortgage has been amended to have the principal amount of $14.0 million, to bear interest at a rate of 7%, subject to a right for CHC to defer certain interest payments for a period of 18 months, and to have a maturity date of June 30, 2021. Halmont also has a right under the second mortgage to an additional payment based on growth in net operating income from the property above an agreed threshold during the term of the loan or in the event the property is sold for a value in excess of an agreed value. Proceeds of the refinancing were used to payout the existing first and second mortgage lenders in the aggregate amount of $46.75 million and to pay transaction costs. CHC's obligations to the lenders under the mortgages is also secured by a second charge over CHC's student housing property in Trois-Rivières, Québec, and a first charge over all of CHC's personal property.

In connection with the refinancing transaction on the London property, CHC will issue to Halmont 200,000 non-transferable common share purchase warrants (the "Loan Warrants"), each of which will be exercisable to acquire one common share of CHC at an exercise price $2.00 per share until June 30, 2021. The issuance of the Loan Warrants is subject to the approval of the TSX Venture Exchange.

Under the Trois-Rivières, Québec refinancing, an arm's length third party has assumed the existing $2.175 million mortgage on the property, and the mortgage has been amended to have the principal amount of $2.57 million, to bear interest at a rate equal to the greater of Royal Bank of Canada's Prime Rate plus 4.05% or 7.5%, and to have a maturity date of October 1, 2019. Proceeds of the refinancing used to discharge the existing first mortgage on the property of $2.175 million, to pay transaction costs and to finance planned improvements at the property which are expected to be completed by the fall.

"We are very pleased to have been able to complete these refinancing transactions and want to thank our new lenders and in particular Halmont for their support," stated Simon Nyilassy, President and CEO of CHC. "Completing these refinancings on these terms will enable us to further stabilize the Company as we continue to focus on our objectives in student housing and working to increase shareholder value."

About CHC Student Housing Corp.

CHC Student Housing Corp. is an owner and operator of student housing properties located in proximity to universities in primary and well understood secondary markets.

Forward Looking Information

Certain statements contained in this news release may constitute forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and other similar expressions. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Any forward-looking statements contained in this news release represent the Company's expectations as of the date hereof, and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

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

For more information, please contact:

Simon Nyilassy, President and Chief Executive Officer
CHC Student Housing Corp.
Telephone: (416) 504-9380
Email: snyilassy@marigoldandassociates.com

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