Whiterock REIT Completes $73 Million of Accretive Acquisitions, 5.95% Unsecured Debenture Offering and $10 Million Early Repayment of Series D Convertible Debentures

TORONTO, May 4 /CNW/ - Whiterock Real Estate Investment Trust (TSX: WRK.UN), a growth oriented REIT with a significant presence in major Canadian markets, announced today that it has completed the previously-announced purchase of a $40.7 million (before closing costs) grocery-anchored retail centre and a $32 million (before closing costs) Class A office building in British Columbia, Canada. The average remaining lease term across the assets is approximately 5.6 years. These properties were purchased in partnership with Return on Innovation Capital Ltd. ("ROI Capital Ltd."), with Whiterock owning a 40% interest and providing property management for all buildings.

With the completion of its recent acquisitions, Whiterock's wholly-owned, co-owned and managed aggregate real estate portfolio now totals approximately 8.1 million square feet across 76 properties.

Whiterock REIT (the "Trust") has also completed its previously-announced offering of $35 million senior unsecured (non-convertible) debentures due April 2016 (the "Debentures"). The first tranche of $25 million closed on April 26, 2011 with the second tranche expected to close by the end of June 2011. The Debentures bear interest at a rate of 5.95% per annum payable monthly, commencing June 30, 2011, and will be redeemable at the option of the Trust. Whiterock used approximately $10 million of the first tranche to complete the early repayment of its 7.5% Series D debentures. The remainder of the first tranche was used to fund the equity portion of the acquisitions and to pay down its acquisitions and operating facilities.

Management expects the impact from the acquisitions along with the related financing to add approximately $0.03 to annualized ongoing AFFO. The full impact of this expected increase to AFFO will be realized starting in the third quarter of 2011. The average capitalization rate on the assets is 7.5% and the average interest rate on the first mortgages is approximately 4.7%.

The Debentures represent a significant milestone for Whiterock as the Trust reduces its use of convertible debentures while continuing to focus on deleveraging the overall balance sheet and increasing AFFO.

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 factors, including those discussed in 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 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 able to: deleverage its overall balance sheet over the medium or long term; increase its AFFO; or achieve the expected capitalization rate on the assets to be acquired or the expected average interest rate on the first mortgages.  Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a relatively stable leasing environment, stable interest costs, limited dilution from conversion of convertible debentures; stable acquisition capitalization rates and available access to equity and debt capital markets to fund, at acceptable costs, Whiterock's future growth plans, and to enable Whiterock to refinance its debt as it matures.  In addition, historic performance is not necessarily indicative of future results.  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:


Frank Bucys, CFO, 416-907-4864
Esam El-Makkawy, 416-642-4726

Source: Whiterock Real Estate Investment Trust

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Whiterock Real Estate Investment Trust

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