Investee Company Update

18 September 2019

Middlefield Canadian Income PCC

(the Company or MCT)

Positive Investee Company Update - Acquisition of Holding

Middlefield Canadian Income PCC (MCT.L), the London listed investment company that invests in a diversified portfolio of primarily Canadian and US equity income securities, is pleased to provide the following positive update on one of its core long term holdings.

On 16 September 2019, Dream Global REIT (DRG.UN) ("Dream Global") announced that funds managed by Blackstone Group Inc. (BX.N) ("Blackstone") will purchase Dream Global in a C$6.2 billion recommended cash transaction (the "Transaction") to acquire all of the office and industrial property manager's subsidiaries and assets, subject to shareholder approval. The purchase price of C$16.79 per unit represents a premium of 18.5% to Dream Global's closing price on Friday 13 September 2019, the last trading day prior to the announcement of the Transaction.

MCT's holding in Dream Global represents approximately 2.5% of the Company's net asset value. Dream Global has been a core holding of the Company since June 2017 and has performed well. In British Pounds, the share price is up approximately 46% YTD and, based on the closing price on 16 September 2019, the Fund has earned a total return of more than 90% on its investment in the REIT.

Dream Global, listed on the TSX in 2011, owns a high-quality portfolio of 215 industrial and office assets across Western Europe including Germany, the Netherlands and Austria with a gross asset value of approximately €4.0 billion.

Commenting on the Transaction, Dean Orrico, President, Middlefield International Limited said:

"We are delighted by the news that Dream Global has attracted a recommended cash bid from Blackstone at a price that more fully reflects the underlying value of the REIT's property portfolio. Real estate continues to be the Fund's single largest sector weighting since we believe that many Canadian REITs remain very well positioned as a result of the quality of their assets, the expectation that interest rates will remain lower for longer and the significant demand for real assets from Blackstone and other private institutional investors.  Dream Global represents the second portfolio acquisition by Blackstone in the past 18 months.  In May 2018, Blackstone completed the acquisition of Pure Industrial Real Estate Investment Trust ("Pure") a leading industrial real estate company in Canada and the US.  The acquisition of Pure represented a 21% premium to their previous closing price and at the time represented a 3.0% portfolio weighting of MCT. We believe that this demonstrates the enduring interest from major alternative asset managers in the value and investment attributes offered by Canadian REITs."

Enquiries:

Notes to Editors

Middlefield Canadian Income PCC aims to provide long term returns through dividend income and capital growth from a diversified portfolio of predominantly Canadian equity income securities and US stocks. The Company has been listed since 2006 as London's only listed Canadian equity income fund.

For more information on the Company, please visit our website and our latest monthly commentary document.

http://www.middlefield.co.uk/mcit.htm