Whiterock Real Estate Investment Trust T.WRK.DB.K

Re: Record

[carswell]

Effective January 28, 2008, the Trust sold its interest in an industrial property in Regina, Saskatchewan to a third party limited partnership, for gross proceeds totaling $14.0 million, which approximates the Trust’s GBV. In conjunction with the sale, the Trust has provided the partnership with a $7.25 million second mortgage at a 10% interest rate in priority to the additional equity capital provided by the partnership. The Trust has the right to acquire the property at market once substantially leased. The Trust continues to guarantee the $7.5 million first mortgage financing on the property. This transaction has enabled the Trust to have the right to acquire an attractive asset in a desirable market without incurring operating shortfalls or the risk associated with lease-up of the property.