Melcor REIT Initial Public Offering Over-Allotment Option Exercised in Full

EDMONTON, ALBERTA–(Marketwired – May 8, 2013) –

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Melcor Real Estate Investment Trust (the “REIT”) (TSX:MR.UN) and Melcor Developments Ltd. (“Melcor”) (TSX:MRD) announced today that pursuant to the underwriting agreement dated April 19, 2013 between the REIT, Melcor and a syndicate of underwriters co-led by RBC Capital Markets and CIBC, and including BMO Nesbitt Burns Inc., TD Securities Inc., Desjardins Securities Inc., National Bank Financial Inc., Scotia Capital Inc., Canaccord Genuity Corp. and Laurentian Bank Securities Inc., the underwriters have exercised in full their option to purchase 830,000 additional trust units of the REIT from Melcor at a price of $10.00 per trust unit for aggregate consideration of $8,300,000.

The closing of the over-allotment is expected to be completed on May 10, 2013. Following closing of the over-allotment option, Melcor will indirectly own an approximate 51.1% effective interest in the REIT.

The trust 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 trust units in the United States or to, or for the account or benefit of, U.S. Persons.

About Melcor Real Estate Investment Trust

Melcor Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Alberta. The REIT has been created for the purpose of acquiring and owning income producing properties located in Western Canada, comprised primarily of retail, office and industrial properties. Concurrent with the completion of the initial public offering of trust units, the REIT indirectly acquired, through a limited partnership, interests in a portfolio of 27 income producing properties located in the Edmonton, Alberta region; the Calgary, Alberta region; Lethbridge, Alberta; Regina, Saskatchewan; and Kelowna, British Columbia, with approximately 1.57 million owned square feet of gross leasable area.

About Melcor Developments Ltd.

Melcor is a diversified real estate development and management company with a rich heritage of integrity and innovation in real estate since 1923.

Through four integrated operating divisions, Melcor develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centres and golf courses.

Melcor’s headquarters are located in Edmonton, Alberta, with regional offices throughout Alberta and British Columbia. Company developments span Western Canada and the US. Melcor has been a public company since 1968 and trades on the Toronto Stock Exchange (TSX:MRD).

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Melcor’s and the REIT’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Melcor’s or the REIT’s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in the final prospectus of the REIT dated April 19^th, 2013. Neither Melcor nor the REIT undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

For more information, visit the REIT’s website at www.melcorREIT.ca and the REIT’s and Melcor’s respective issuer profiles at www.sedar.com