Management contract****************************************************************************************************************
TORONTO, June 28 /CNW/ -Whiterock Real Estate Investment Trust (TSX: WRK.UN) a growth orientedREIT with a significant presence in major markets and a high qualitylong-term leased revenue stream, announced today that it has completedan agreement to manage eight commercial properties totalingapproximately 600,000 square feet in the Greater TorontoArea (GTA). Management of these multi-tenant office buildings is set tobegin July 1st, 2010 and is expected to add
.5 million of AFFO each year, or increasingannualized AFFO by over
.03 per unit.
The addition of these assets to Whiterock's portfolio will furtherstrengthen its presence in the key GTA market to approximately threemillion square feet. Furthermore, Whiterock's owned and/or managedaggregate real estate portfolio will now total approximately 6.8 millionsquare feet across 68 properties in seven provinces. Whiterock's ownedproperties have a weighted average remaining lease term of approximately6.5 years and nearly 43.5% of the portfolio consists of government andinvestment grade tenants.
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Very interesting, management without any ownership... That could work... provided their salaries don't eat up all the revenue.
Of course, the institutional investors won't like this either ;-)
But then, they have almost no units left to sell :-)