* To acquire Airway Centre 1, lease Airway Centre 2-4
* To raise C$34 million through equity
May 27 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
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
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
(firstname.lastname@example.org; within U.S. +1 646 223 8780;
outside U.S. +91 80 4135 5800; Reuters Messaging: