Capital Wapiti Inc. acquires an industrial property in Longueuil, Québec, and waives its conditions on the acquisition of another in Halifax

    TSX-Venture (WTI.P)

    MONTREAL, Jan. 24 /CNW Telbec/ - Capital Wapiti Inc. ("Wapiti" or the
"Corporation") announces that it closed the acquisition of an industrial
property located in the Montreal suburb of Longueuil, Québec. It also waived
its conditions related to the acquisition of another property located in

    Wapiti acquires a property in Longueuil, Quebec

    Wapiti acquired a property located at 5200, J.A. Bombardier Street,
Longueuil, Québec. The property consists of a 46,320 square-foot building
located on a 183,337 square-foot lot. The building was built in 2006 and
comprises a warehouse and office space. The property is fully rented to Lapaco
Paper Products Ltd under a lease ending in 2016 and which provides for a
rental increase in 2011. The purchase price is $4.13 million, including an
assumed mortgage loan of $2.93 million, bearing interest at 5.82%, amortized
over 25 years and maturing in August, 2009. The property is being acquired at
a going-in cap rate of 7.25%.
    Approximately 50% of the land is excess to the tenant's current needs.
The tenant has the right to expand its premises, with the expansion to be
built by the landlord. The rent payable would be set by a pre-determined

    Wapiti waives its condition on the purchase of a property in Halifax

    Wapiti is also announcing that it has executed a binding offer to
purchase and has waived its conditions with respect to the future purchase of
667 Barnes Road, Halifax International Airport, Enfield, Nova Scotia. The
property 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 will be $4 million, subject to the usual closing adjustments. The price
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 is being
acquired at a going-in cap rate of 8.61%.
    The transaction is conditional on the approval of the Halifax Airport
Authority and the receipt of clearance certificate under section 116(5.2) of
the Income Tax Act (Canada) for one of the vendors, a foreign-based entity.
    Both transactions are immediately accretive to Wapiti.
    Mr. Robert Berger, who will take up the position of President and Chief
Operating Officer of the Corporation as of February 1, 2008, is an interested
party in these two transactions as a member of the groups of vendors. All
parties, including the Board of Directors of Wapiti, were fully aware of this
fact when the transactions were approved. In particular, the Governance
Committee of the Board of Wapiti has reviewed the purchase process and due
    "These two transactions are part of the three planned transactions that
we announced last November", said Mr. Bernard McDonell, Vice-Chairman and
Chief Executive Officer of Wapiti. "When the Halifax transaction closes our
total rental space will reach more than 165,000 square feet, compared with
93,634 before today's announcement. We are still conducting negotiations on a
third building in Eastern Canada, which would bring the total to more than
224,000 square feet if they lead to a transaction. We are delivering on our
commitment to rapidly grow our asset base through the acquisition of quality
assets at attractive cap rates."

    Forward-Looking Statements:

    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
    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.

    The TSX Venture Exchange does not accept responsibility for adequacy or
    accuracy of this press release.

For further information:

For further information: Mr. Bernard McDonell, Vice-Chairman and Chief
Executive Officer, Capital Wapiti Inc., (514) 914-2536; Mr. Serge Beaudet,
Chief Financial Officer and Secretary, Capital Wapiti Inc., (514) 892-2936

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