MONTREAL, March 4 /CNW Telbec/ - Capital Wapiti Inc. ("Wapiti" or the
"Corporation") (TSX-Venture: WTI.P) announced today that it closed the
acquisition of an industrial property located at the Halifax airport.
The property, which is located at 667 Barnes Road, Halifax International
Airport, Enfield, Nova Scotia, consists of a 29,074 square-foot building
located on a 160,442 square-foot lot with airside access, occupied under a
lease with a 30-year term ending on May 31, 2035. The building comprises a
mail sorting facility and office space. The property is fully rented by
Purolator Courier Ltd until December 31, 2015, with a rental increase in 2011.
The purchase price is $4 million and includes an assumed mortgage of
$2.575 million, bearing interest at 6.48%, amortized over 18 years and
maturing on January 1, 2016. The property was acquired at a going-in cap rate
As reported previously, the transaction is immediately accretive to
Wapiti. Mr. Robert Berger, who became President and Chief Operating Officer of
the Corporation as of February 1, 2008, is an interested party in this
transaction as a member of the vendor group. All parties, including the Board
of Directors of Wapiti, were fully aware of this fact when the transaction was
approved. In particular, the Governance Committee of the Board of Wapiti has
reviewed the purchase process and due diligence.
"This acquisition - our third since last October - is consistent with our
business strategy of targeting industrial properties primarily in Eastern
Canada, which are of strategic importance to the end user," said Mr. Bernard
McDonell, Vice-Chairman and Chief Executive Officer of Wapiti. "For Purolator
it is crucial to be at the airport and to have access to an air strip."
"As of today, we own in excess of 165,000 square feet of industrial real
estate," added Mr. McDonell. "And, as we announced on February 20, we are in
the midst of acquiring a 30,687 square foot facility in Winnipeg, which is
occupied by FedEx Ground Package System, Inc."
"The bottom line," he concluded, "is that we are on track, fulfilling our
commitment to rapidly grow our asset base through the acquisition of quality
assets at attractive cap rates."
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
Capital Wapiti is a Canadian corporation that invests exclusively in
industrial properties in primary and secondary markets in Eastern Canada.
Additional information on the Corporation is available at
www.capitalwapiti.com and on the SEDAR web site at www.sedar.com.
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; Mr. Serge Beaudet,
Chief Financial Officer and Secretary, Capital Wapiti Inc., (514) 892-2936