RE: Trading haltWhiterock REIT Announces $75 Million Equity Offering
6/22/2011 3:13:29 PM - NFD
TORONTO, ONTARIO, Jun 22, 2011 (Marketwire via COMTEX News Network) --
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Whiterock Real Estate Investment Trust ("Whiterock") (TSX:WRK.UN) is pleased to announce that it has entered into an agreement to sell 5,640,000 trust units ("Units") on a bought deal basis at a price of $13.30 per Unit to a syndicate of underwriters led by TD Securities Inc. for gross proceeds of $75,012,000. In addition, Whiterock has granted the syndicate an over-allotment option, exercisable for a period of 30 days following closing, to purchase up to an additional 846,000 Units which, if exercised in full, would increase the gross proceeds of the offering to $86,263,800. The offering is scheduled to close on or about July 5, 2011, and is subject to regulatory approval. The first distribution that purchasers of Units under this offering will be entitled to receive will be payable on or about August 15, 2011 to unitholders of record on July 31, 2011.
Whiterock intends to use the net proceeds of the offering to fund potential future acquisitions and for general trust purposes.
Consistent with its past practices and in the normal course, Whiterock is engaged in discussions with respect to potential acquisitions of new properties to add to its real estate portfolio. Whiterock currently has a pipeline of approximately $295 million (before closing costs) of acquisitions at various stages of negotiation and subject to certain conditions, including due diligence and/or financing. The largest of these potential acquisitions is a two-tower Class A multi-tenant office complex, with ancillary retail, located in Mississauga, Ontario, consisting of 657,503 square feet of rentable area. Whiterock intends to acquire certain of these new properties together with an established institutional investor; however, no assurance can be given that any of these potential acquisitions will be completed.
The Units will be offered by way of prospectus supplement to the short form base shelf prospectus of Whiterock dated October 29, 2010. The prospectus supplement will be filed with securities regulatory authorities in all provinces of Canada on or about June 24, 2011.