TORONTO, April 13 /CNW/ - Whiterock Real Estate Investment Trust (TSX:WRK.UN) announced today that it has acquired three high quality, flex office assets with significant below market leases in Regina, Saskatchewan. In keeping with its active acquisition program, Whiterock and a co-owner acquired the three business centers for $17.7 million before closing costs. The in-place AFFO from the properties will add approximately $0.03 per unit, or 2%, to Whiterock's annualized AFFO.
Whiterock's partner on these acquisitions is Return on Innovation Capital Inc. ("ROI Capital"), an investment firm based in Toronto that specializes in private placement investments, including a focus on high quality properties with visible growing cash flow streams backed by solid covenants and longer term leases. With over $700 million in assets, ROI Capital is one of the fastest growing investment firms in Canada.
The portfolio includes three multi-tenant flex office buildings located in Regina, Saskatchewan. The assets are based in the prominent Ross Industrial Park, which is the primary industrial park in Regina, and includes the McDonald Business Centre, the Henderson Business Centre and the Imperial Business Centre. Access to the properties is provided by the close proximity to the Trans-Canada Highway and major arterial roads, Ring Road and Highway 1. The portfolio has been maintained to institutional standards with over $900,000 in capital upgrades in the past four years.
Collectively, the centres are 96% occupied and comprise approximately 183,000 square feet of rentable space on over 12 acres of land with an excellent mix of office, industrial and retail space. Each property contains ample surface parking.
Whiterock's 40% equity investment in the properties, net of debt, totals approximately $3.1 million, with an in-place AFFO return of approximately 13%. Whiterock used cash on hand to finance its investment in these properties.
Whiterock's owned and managed portfolio totals 5.6 million square feet across 56 properties, with a weighted average lease term of approximately 7 years. 52% of the portfolio consists of government and investment grade tenants. 100% of distributions made in prior years were classed as a return of capital for tax purposes. At the close of market on April 12th, 2010, Whiterock's units provided a yield of 11.1%.
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 increase its AFFO. 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.
SOURCE WHITEROCK REAL ESTATE INVESTMENT TRUST
For further information: For further information: www.whiterockreit.ca; Frank Bucys, CFO, (416) 907-4864; Jennifer Kosloski, (416) 979-3026.