Whiterock REIT Completes Previously Announced Acquisitions in the GTA and MTL

Whiterock Real Estate Investment Trust (REIT), 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 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 7.8%.

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. 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 properties.

on January 31, 2011