Whiterock Closes $82 Million Acquisition of 401 & 405 The West Mall in Toronto, Ontario

    TORONTO, Sept. 2 /CNW/ - Whiterock Real Estate Investment Trust
(TSX:WRK.UN) announced today that it has closed the previously announced
agreement to acquire 401 & 405 The West Mall located in Toronto for $82.3
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 $9.8 million, with an in-place AFFO return of 22%. Whiterock
used cash on hand and its recently renewed $40 million acquisition and
operating facility to finance its investment. The in-place AFFO from the
property will add approximately $0.32 per unit to Whiterock's annualized AFFO.
    401 & 405 The West Mall is a 99% leased Class A multi-tenant office
building with 411,285 square feet of office space in two adjacent 11 storey
towers, and 1,200 parking stalls. The property is well located with direct
access to Highway 427 in the heart of the Greater Toronto Area, and is only 10
minutes from Pearson International Airport. The building is occupied by a
solid mix of high quality multi-national tenants including Parmalat, Diageo,
Auto Trader, Livingston and RBC. In-place rents are below market, with an
average lease term remaining of 7 years. The building has undergone over $20
million of improvements over the last 7 years including new lobby and atrium
areas, new windows, upgraded HVAC equipment, and significant tenant area
    With the completion of this acquisition, Whiterock's portfolio totals 3.4
million square feet across 44 properties, with a weighted average lease term
of over 7 years.

    Forward-Looking Statements

    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.

    %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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