MONTREAL, March 20 /CNW Telbec/ - Capital Wapiti Inc. ("Wapiti" or the
"Corporation") (TSX-Venture: WTI.P) announced today that it is satisfied with
the results of its due diligence investigations and has consequently waived
its conditions under an agreement of purchase and sale with respect to an
industrial property in Winnipeg, Manitoba.
Located at 560 Camiel Sys Street, in the St. Boniface Industrial Park,
the 6.35 acre property includes a 30,687 square-foot building. Wapiti expects
to close the transaction in early April. The building, which was completed in
July, 2007, is occupied by Fedex Ground Package System, Inc. The building
comprises 29,245 square feet for mail and package sorting as well as
1,442 square feet of office space. The lease runs until July 31, 2017, and
FedEx has two renewal options of five years at a predetermined rent. It also
has an option to expand the premises by another 2,753 square feet, at a rent
to be negotiated.
A capitalization rate of 8.11%
The purchase price is $4,525,000, which represents a going in
capitalization rate of 8.11%. The transaction will be immediately accretive to
As a result of this transaction the total industrial property owned by
Wapiti would increase from 168,938 square feet to 199,625 square feet. The
total purchase price for all four properties would be $17,155,000.
"This transaction, our fourth since October, is consistent with our
business strategy of acquiring properties which are of strategic importance to
the end user," explained Robert Berger, President and Chief Operating Officer
of Wapiti. "This facility is strategically placed along transportation routes
that are key to FedEx's continued success in the region."
"We are delivering," added Mr. Berger, "on our commitment to rapidly grow
our asset base through the acquisition of quality assets at attractive
capitalization rates, providing a stable income stream with minimal management
This press release contains forward-looking statements. Forward-looking
statements are subject to risk, uncertainties and assumptions. Although the
Directors of Wapiti believe that the expectations represented in such
forward-looking statements are reasonable, there can be no assurance that such
expectations will prove to be correct. Some of the factors and risks which
could affect future results and could cause results to differ materially from
those expressed in the forward-looking statements contained herein include the
impact of general economic conditions, industry conditions, governmental
regulation, environmental risk, competition from other industry participants,
stock market volatility, the ability to access sufficient capital from
internal and external sources and the risk of fluctuation and variation in
actual operating results, which variation may be material. A full description
of these risk factors can be found in Wapiti final prospectus dated April 5,
2007 and Filing Statement dated October 15, 2007 which are available
electronically at www.sedar.com.
The forward-looking statements contained herein are expressly qualified
in their entirety by this cautionary statement. The forward-looking statements
included herein are made as of the date hereof and Wapiti does not undertake
any obligation to publicly update such forward-looking statements to reflect
new information, subsequent events or otherwise.
About Capital Wapiti Inc.
Capital Wapiti is a Canadian corporation that invests exclusively in
industrial properties in primary and secondary markets primarily in Eastern
Canada. Including the acquisition proposed above, the Corporation owns four
properties totalling 199,625 sq. ft. Additional information on the Corporation
is available at www.capitalwapiti.com and on the SEDAR website at
The TSX Venture Exchange does not accept responsibility for adequacy or
accuracy of this press release.
For further information:
For further information: Mr. Robert Berger, President and Chief
Operating Officer, Capital Wapiti Inc., (514) 868-9550,
email@example.com; Mr. Serge Beaudet, Chief Financial Officer and
Secretary, Capital Wapiti Inc., (514) 892-2936