Whiterock REIT Closes $80 Million of Acquisitions in Alberta


    TSX - WRK.UN

    TORONTO, July 17 /CNW/ - Whiterock Real Estate Investment Trust
("Whiterock" or the "REIT") today announced that it has closed the previously
announced agreements to acquire $80 million of commercial properties in
Calgary and Edmonton, Alberta. With the completion of this acquisition,
approximately 33% of Whiterock's portfolio by net operating income is now in
the high growth Saskatchewan and Alberta markets. The transaction is
approximately $0.08 accretive to Funds From Operations ("FFO") per unit and
$0.03 accretive to Whiterock's Adjusted Funds From Operations ("AFFO") per
    This portfolio totals approximately 341,000 square feet of real estate
(approximately 54% office, 30% industrial, and 16% retail) over eight
properties. In total, these assets are currently 99% leased with a 5.7 year
average remaining lease term. Current market rents are on average 20% above
in-place leases.
    The purchase price of $80 million, excluding closing and transaction
costs, represents a going-in capitalization rate of approximately 7.0%. The
purchase price has been satisfied with a $22.8 million private placement of
new units and new convertible unsecured subordinated debentures to the vendor,
with the balance of the funds provided by new and assumed mortgages at an
average rate of 5.8% and an average term of 5.1 years, as well as Whiterock's
$40 million revolving credit facility. The vendor received $11.4 million of
new units issued at $11.50 per unit and $11.4 million of new convertible
unsecured subordinated debentures with a 6.0% coupon, a 4-year term, and a
conversion price of $13.22 per unit.
    "Whiterock is pleased to complete this acquisition and build its presence
in Alberta, as well as establish a new relationship with a strong local real
estate investment group. As previously stated, the portfolio is immediately
accretive to both FFO and AFFO and has $1 million of below market rents, most
of which can be captured over the near-term. Additionally, the issuance of the
new units and the new convertible unsecured subordinated debentures at these
levels to a sophisticated vendor is a clear indication of Whiterock's current
value proposition and future upside potential" said Jason Underwood, CEO.

    About Whiterock

    With the closing of this acquisition, Whiterock's portfolio consists of
41 properties totalling 3.1 million square feet, located in 13 primary and
secondary markets across Canada, including Calgary, Edmonton, Regina,
Saskatoon, Toronto, Ottawa, Montreal and Quebec City. The average lease term
is approximately 7.9 years, with approximately 61% leased to government or
investment grade firms. At the close of market on July 16th, 2008, Whiterock's
units provided a yield of 11.3%.

    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 not 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 and/or
diversification opportunities, reliance on anchor or single tenant properties,
potential Unitholder liability, potential conflicts of interest, the
availability of sufficient cash flow, fluctuations in cash distributions,
fluctuations in the market price of Whiterock's units, the risk of 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. In particular, but
without limitation, there is no assurance that Whiterock will be able to
increase its FFO or AFFO as anticipated. 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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