TORONTO, Nov. 10 /CNW/ - Whiterock Real Estate Investment Trust (TSX:WRK.UN) announced today that it has closed the previously announced agreement to acquire 460 Two Nations Crossing, located in Fredericton, New Brunswick, for $9.7 million before closing costs. Whiterock has a 40% equity interest in the property, a long-term property management contract and a right of first opportunity to purchase the partner's interest in the asset. Whiterock's partner on this acquisition is an established institutional investor that focuses on high quality properties in primary markets, with visible growing cash flow streams backed by solid covenants and longer term leases.
Whiterock's equity investment in this property, after assumption of the existing debt, is approximately $1.3 million, with an in-place AFFO return of 17%. Whiterock used cash on hand to finance its investment. The in-place AFFO from the property will add more than $0.02 per unit to Whiterock's annualized AFFO (after taking into account the two-for-one unit split effective November 6, 2009).
460 Two Nations Crossing is a newly constructed 50,945 square foot office building located on Two Nations Crossing just northeast of downtown Fredericton. The building is 100% occupied by the Province of New Brunswick with a remaining lease term of 19 years. The property features easy access to a major arterial road, Ring Road, and is within 10 minutes of downtown Fredericton and within 30 minutes of the Greater Fredericton Airport.
With the completion of this acquisition, Whiterock's portfolio totals 3.4 million square feet across 45 properties, with a weighted average lease term of approximately 8 years. 58% of the portfolio consists of government and investment grade tenants.
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 risks, uncertainties and other factors, including those discussed in Whiterock's various securities filings, including 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 risks, uncertainties and other 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