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UPDATE 1-Whiterock REIT to add office properties worth C$147 mln
May 26, 2010 / 9:57 PM / in 7 years

UPDATE 1-Whiterock REIT to add office properties worth C$147 mln

* To acquire Airway Centre 1, lease Airway Centre 2-4

* To raise C$34 million through equity

May 27 (Reuters) - Whiterock Real Estate Investment Trust WRK_u.TO said it agreed to purchase and lease office properties worth C$147 million ($137.8 million), and will fund this by raising about C$34 million through an equity offering.

The REIT said it will acquire Airway Centre 1 for about C$30 million, which includes a debt assumption of about C$19.8 million, and enter into a long-term lease for Airway Centre 2-4.

The company said the long-term lease, which is for 30 years initially, may require Whiterock to acquire the freehold interest in Airway Centre 2-4 for C$117 million.

Airway Centre 2-4 also has C$79 million in mortgage debt.

Whiterock will issue 2.43 million units at C$14 each to a syndicate of underwriters led by TD Securities Inc. This is a discount of 4 percent to Whiterock’s Wednesday close of C$14.65 on the Toronto Stock Exchange.

Whiterock has granted the underwriters an overallotment option of up to 364,500 units at the offering price.

Whiterock intends to use C$10.2 million of the net proceeds of the offering to fund the acquisition of Airway Centre 1 and the remainder to fund about C$24 million in prepaid rent obligations for Airway Centre 2-4 and for general trust purposes.

The offering is expected to close by June 15, the company said in a statement. ($1=1.067 Canadian Dollar) (Reporting by Aftab Ahmed in Bangalore; Editing by Roshni Menon) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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