TORONTO, Jan. 31 /CNW/ - Whiterock Real Estate Investment Trust (TSX:
WRK.UN), a growth oriented REIT with a significant presence in major
markets, announced that it has closed $93 million to date of the $112
million (before closing costs) of previously-announced acquisitions of
office and industrial buildings located in the Greater Toronto Area
(GTA) and Montréal.
Whiterock continues to expect that the $19.3 million (before closing
costs) acquisition of 2010 Winston Park Drive will close in March 2011,
subject to standard closing conditions.
Whiterock's portion of the equity required is being funded by existing
cash on hand along with refinancing proceeds obtained from
under-leveraged assets in the existing portfolio. The interest rate on
the additional funds raised averages approximately 4.4%. Management
expects the impact from the announced acquisitions, including 2010
Winston Park Drive, along with refinancings to add $0.06 per unit
(post-split) to annualized ongoing AFFO. The full impact of this
expected increase to AFFO should be realized starting in the second
quarter of 2011. The average cap rate on the assets is approximately
The GTA and Montréal portfolio acquisitions consist of multi-tenant
office and single tenant industrial buildings that represent a combined
960,000 square feet and offer excellent visibility, a diverse tenant
base and easy access to major arterial highways. The average remaining
lease term across the assets is approximately 10 years. The majority of
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.
GTA Property Descriptions
10 Lower Spadina is located in downtown Toronto just off of the Gardiner
Expressway, within walking distance to the downtown core and Billy
Bishop Toronto City Centre Airport. 10 Lower Spadina is a 7 storey
office building totaling approximately 60,000 square feet that is 100%
leased with an average remaining lease term of 5.8 years.
6501-6559 Mississauga Road property consists of 156,000 square feet of
gross leasable area in an office park setting located at the
intersection of Erin Mills Parkway and Mississauga Road. The property
is well-located giving easy access to the QEW, Highway 403, Highway
410, and Highway 401.
55 Norfolk Street is approximately 13,000 square feet and serves as the
Royal Bank of Canada branch for the town of Simcoe.
2010 Winston Park Drive is a 5 storey, 80,000 square foot office
building which is 100% leased with an average remaining lease term of
4.2 years. The property fronts the QEW (one of the GTA's major arterial
highways) offering excellent access and visibility.
Montréal Property Descriptions
10001 Metropolitan East Boulevard is a 327,000 square foot,
state-of-the-art distribution centre leased for 13 years to The Brick
(TSX: BRK.UN). This facility serves as a distribution hub for the
Ottawa, Quebec and Eastern Canada markets. The Brick has been in
operation since 1971 and is one of Canada's largest volume retailers of
furniture, home appliances, and other home furnishings. 10001
Metropolitan East Boulevard has excellent visibility from one of
Montréal's major arterial highways (Autoroute 40) and is within 30
minutes of the Pierre Elliott Trudeau International Airport.
1155 Chomedey Boulevard is located in close proximity to arterial
highways Autoroute 13 and Highway 440. Consisting of 115,000 square
feet of gross leasable area, 1155 Chomedey Boulevard is a fully leased,
single tenant flex-office building that serves as the head office and
distribution centre for Effigi Inc. Effigi is a 20 year old established
multi-national clothing and lifestyle design firm that includes well
known brands such as Gagou Tagou, Romeo & Juliette, and Black Mountain.
The remaining lease term is 16 years.
1125 50th Avenue is wholly-owned by Whiterock REIT and is situated on one of
Montréal's major arterial freeways. The property is extremely well
located with direct access to Hwy 20 and to other major Montréal
freeways: Hwy 520, 13, and 15. It is also within close proximity to
downtown Montréal and only minutes away from the Montréal International
Airport. Consisting of 211,000 square feet of gross leasable area, 1125
50th Avenue is a fully leased, single tenant state-of-the-art production and
storage facility that serves as the sole Eastern North American
distribution centre for Nellson Nutraceutical LLC. Nellson is the
market-leading outsourced formulator and manufacturer of functional
bars and powders. The company was founded in 1962 and is headquartered
in Los Angeles, California. Nellson's remaining lease term is 8 years.
Whiterock's partner on the GTA and Montréal acquisitions is ROI Capital
Ltd., an investment firm based in Toronto that specializes in private
placement investments, including a focus on high quality properties
with visible growing cash flow streams backed by solid covenants and
long term leases. With over $1 billion in assets, ROI Capital Ltd. is
one of the fastest growing investment firms in Canada.
Subsequent to the completion of the GTA and Montréal acquisitions,
Whiterock's wholly-owned, co-owned and managed aggregate real estate
portfolio will total approximately 7.6 million square feet across 73
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 to able to increase its AFFO. 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; 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. 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