Whiterock REIT Provides Update Concerning its Sale/Merger Process and Portfolio Performance



    TORONTO, June 29 /CNW/ - Whiterock Real Estate Investment Trust
("Whiterock" or the "Trust") (TSX:WRK.UN) today provided an update on its
process to solicit proposals to acquire or merge with the Trust, previously
announced on January 16, 2007.

    UPDATE ON PROCESS TO SOLICIT ACQUISITION OR MERGER PROPOSALS

    Whiterock continues to review all strategic alternatives, including the
ongoing operations of its business platform or a sale or merger of the Trust.
In the process of reviewing its strategic alternatives, the Trustees of
Whiterock, through a Special Committee, have sought interest over the past six
months from a wide variety of parties regarding a proposed acquisition or
merger of the Trust.
    Today the Trust announced Oz Pedde, the Chairman of the Governance and
Compensation Committee, was unanimously appointed to the Special Committee as
a non-voting member.
    Whiterock intends to continue discussions with interested parties
relating to potential offers for the acquisition or merger of the Trust. There
can be no assurance that the continuation of the process will result in a
satisfactory binding sale or merger offer being made for the Trust. The
Trustees may ultimately determine that its current business plan or the
adoption of a strategic alternative other than the sale or merger of the Trust
is the best means to build and deliver unitholder value.

    UPDATE ON PORTFOLIO PERFORMANCE

    The performance of the existing portfolio has continued to improve.
Management expects that the pro forma run rate AFFO per outstanding Unit will
exceed the current annualized distribution of $1.12 in the near term as a
direct result of the following events that are largely within management's
control:

    
    -   Revenue coming on line from new leases and renewals, the majority of
        which are already executed, at 655 Bay Street in Toronto and
        industrial properties in Regina

    -   Re-investment of $14 million of available cash

    -   Income from operating efficiencies, including property management of
        select assets and G&A savings
    

    Contractual rental increases from in-place leases and under-market lease
renewals are expected to add an additional 3% to 4% of AFFO growth in each of
2008 and 2009. In addition, there are AFFO growth opportunities through
further property self-management and accretive acquisitions.
    Further, Whiterock has proven that it has a successful business platform
with a portfolio of high quality assets and investment grade tenants, matched
with long term fixed-rate debt, and established relationships in select
markets across Canada.
    A detailed Management Presentation will be available on the Trust's
website at www.whiterockreit.ca

    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.

    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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