Whiterock Announces $82 Million Acquisition of 401 & 405 The West Mall in Toronto, Ontario



    TORONTO, Aug. 11 /CNW/ - Whiterock Real Estate Investment Trust
(TSX:WRK.UN) announced today that it has entered into a binding contract,
subject to customary closing conditions, to acquire 401 & 405 The West Mall
located in Toronto for $82.3 million before closing costs. Whiterock will have
a 40% equity interest in the property, a long-term property management
contract and a right of first opportunity to purchase the partner's interest
in the asset. Whiterock's partner on this acquisition is an established
institutional investor that focuses on high quality properties in primary
markets, with visible growing cash flow streams backed by solid covenants and
longer term leases.
    Whiterock's equity investment in this property, after assumption of the
existing debt, will be approximately $9.8 million, with an in-place AFFO
return of 22%. Whiterock intends to use cash on hand and its recently renewed
$40 million acquisition and operating facility, which currently has no amount
outstanding, to finance its investment. On acquisition, the in-place AFFO from
the property will add approximately $0.32 per unit to Whiterock's annualized
AFFO.
    "This acquisition is the beginning of an exciting era at Whiterock where
our full service real estate platform can be leveraged through partnerships
with high quality institutions, to produce outsize returns to our investors
from top quality real estate, as clearly demonstrated from the 22% AFFO yield
on this $10 million equity investment," said Jason Underwood, CEO.
    401 & 405 The West Mall is a 99% leased Class A multi-tenant office
building with 411,135 square feet of office space in two adjacent 11 storey
towers, and 1,200 parking stalls. The property is well located with direct
access to Highway 427 in the heart of the Greater Toronto Area, and is only 10
minutes from Pearson International Airport. The building is occupied by a
solid mix of high quality multi-national tenants including Parmalat, Diageo,
Auto Trader, Livingston and RBC. In-place rents are below market, with an
average lease term remaining of 7 years. The building has undergone over $20
million of improvements over the last 7 years including new lobby and atrium
areas, new windows, upgraded HVAC equipment, and significant tenant area
improvements.
    The transaction is scheduled to close at the end of August 2009. On
acquisition, Whiterock's portfolio will total 3.4 million square feet across
44 properties, with a weighted average lease term of over 7 years.

    Forward-Looking Statements

    This news release contains "forward-looking statements" within the
meaning of applicable securities legislation. These forward-looking statements
generally can be identified by the use of forward-looking terminology such as
"may", "will", "expect" "estimate", "anticipate", "intend", "believe" or
"continue", the negative forms thereof and similar expressions suggesting
future outcomes or events. Such forward-looking statements reflect
management's current beliefs and are based on information currently available
to management. These statements are not guarantees of future events or
performance and, by their nature, are based on Whiterock's estimates and
assumptions, which are subject to known and unknown risks, uncertainties and
other factors that may cause the actual events, results or prospects to be
materially different from those expressed or implied herein. Readers are
cautioned that a number of factors, including those discussed in the section
entitled "Risk Factors" in Whiterock's Annual Information Form which can be
obtained at www.sedar.com, could cause actual events, results or prospects to
differ materially from those stated or implied. These factors should be
considered carefully, and a reader should not place undue reliance on
forward-looking statements, as there can be no assurance that actual events,
results or prospects will be consistent with such statements. In particular,
but without limitation, there can be no assurance that Whiterock will be to
able to continue to increase its AFFO. Material factors or assumptions that
were applied in drawing a conclusion or making an estimate set out in the
forward-looking information may include, but are not limited to: a less robust
leasing environment than has been seen for the last several years; relatively
stable interest costs; an increase in acquisition capitalization rates and
more limited access to equity and debt capital markets to fund, at acceptable
costs, Whiterock's growth plans, and to enable Whiterock to refinance its
debts as they mature. Except as required by law, Whiterock does not undertake,
and specifically disclaims, any obligation to update or revise any
forward-looking statements, whether as a result of new information, future
developments or otherwise.

    
       The Toronto Stock Exchange has not reviewed and does not accept
         responsibility for the adequacy or accuracy of this release.
    

    %SEDAR: 00022234E




For further information:

For further information: www.whiterockreit.ca; Jason Underwood, (416)
907-4861; Paul Simcox, (416) 907-4862; Frank Bucys, CFO, (416) 907-4864

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WHITEROCK REAL ESTATE INVESTMENT TRUST

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