Whiterock REIT Announces $80 Million of Acquisitions in Alberta



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

    TSX - WRK.UN

    TORONTO, June 23 /CNW/ - Whiterock Real Estate Investment Trust
("Whiterock" or the "REIT") today announced that it has entered into a binding
agreement to acquire approximately $80 million of commercial properties in
Calgary and Edmonton, Alberta. On completion of this acquisition,
approximately 33% of Whiterock's portfolio by net operating income will be in
the high growth Saskatchewan and Alberta markets. The transaction will be
approximately $0.08 accretive to Funds From Operations ("FFO") per unit and
$0.03 accretive to Whiterock's Adjusted Funds From Operations ("AFFO") per
unit, and is expected to close in July.
    This portfolio is being acquired from one vendor and totals approximately
341,000 square feet of real estate (approximately 54% office, 30% industrial,
and 16% retail) over eight properties. In total, these assets are currently
99% leased with a 5.7 year average remaining lease term. Current market rents
are on average 20% above in-place leases.
    The purchase price of $80 million, excluding closing and transaction
costs, represents a going-in capitalization rate of approximately 7.0%. The
purchase price is expected to be satisfied by a $22.8 million private
placement of new units and new convertible unsecured subordinated debentures
to the vendor, with the balance of the funds provided by new and assumed
mortgages and Whiterock's new $40 million revolving credit facility. The
vendor will receive $11.4 million of new units issued at $11.50 per unit and
$11.4 million of new convertible unsecured subordinated debentures with a 6.0%
coupon, a 4-year term, and a conversion price of $13.22 per unit.
    "Whiterock is pleased to renew its growth strategy with a strong
acquisition. The portfolio is immediately accretive to both FFO and AFFO and
has $1 million of below market rents, most of which can be captured over the
near-term. It is our first move into Alberta, which will be one of the key
markets for us going forward. The issuance of the new units and the new
convertible unsecured subordinated debentures at these levels to a
sophisticated vendor is clearly a vote of confidence in the REIT's current
value proposition and its future upside potential," said Whiterock CEO Jason
Underwood.

    About Whiterock

    Subsequent to the closing of its announced acquisitions, Whiterock's
portfolio will consist of 41 properties totalling 3.1 million square feet,
located in 13 primary and secondary markets across Canada, including Calgary,
Edmonton, Regina, Saskatoon, Toronto, Ottawa, Montreal and Quebec City. The
average lease term will be approximately 7.9 years, with approximately 61%
leased to government or investment grade firms. At the close of market Friday
June 20th, 2008, Whiterock's units provided a yield of 10.7%.

    Forward Looking Statements

    This news release contains "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995
and applicable Canadian securities legislation. Forward-looking statements
include, but are not limited to, statements with respect to financial
performance, sale-leaseback opportunities, proposed acquisitions and equity or
debt offerings, new markets for growth, financial position, comparable
commercial REITs and proposed acquisitions. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not anticipate",
or "believes", or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved".
    Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Whiterock to be materially different
from those expressed or implied by such forward-looking statements, including
but not limited to: the risks related to the market for Whiterock's
securities, the general risks associated with real property ownership and
acquisition, that future accretive acquisition opportunities will be
identified and/or completed by Whiterock, lease maturities, risk management,
liquidity, debt financing, credit risk, competition, general uninsured losses,
interest rate fluctuations, environmental matters, restrictions on redemptions
of outstanding Whiterock securities, lack of availability of growth
opportunities, diversification, reliance on anchor or single tenant
properties, potential Unitholder liability, potential conflicts of interest,
the availability of sufficient cash flow, fluctuations in cash distributions,
the market price of Whiterock's units, the failure to obtain additional
financing, dilution, reliance on key personnel, changes in legislation,
failure to obtain or maintain mutual fund trust status and delays in obtaining
governmental approvals or financing as well as those additional factors
discussed in the section entitled "Risk Factors" in Whiterock's Annual
Information Form which can be obtained at www.sedar.com. In particular, but
without limitation, there is no assurance that Whiterock will be able to
increase its FFO or AFFO as anticipated.

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

    For further information: www.whiterockreit.ca
    %SEDAR: 00022234E




For further information:

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

Organization Profile

WHITEROCK REAL ESTATE INVESTMENT TRUST

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