August 11, 2009
Whiterock Real Estate Investment Trust (TSX:WRK.UN) announced today that it has entered into a binding contract, subject to traditional closing conditions, to acquire 401 & 405 The West Mall for $82.3 million before closing costs.
Whiterock intends to use cash on hand and its recently renewed $40 million acquisition and operating facility, which currently has no amount outstanding, to finance its investment.
401 & 405 The West Mall is a 99% leased Class A multi-tenant officebuilding with 411,135 square feet of office space in two adjacent 11 storey towers, and 1,200 parking stalls. The property is well located with direct access to Highway 427 in the heart of the Greater Toronto Area, and is only 10 minutes from Pearson International Airport.
The building is occupied by a solid mix of high quality multi-national tenants including Parmalat, Diageo, Auto Trader, Livingston and RBC. In-place rents are below market, with an average lease term remaining of 7 years. The building has undergone over $20 million of improvements over the last 7 years including new lobby and atrium areas, new windows, upgraded HVAC equipment, and significant tenant area improvements.
The transaction is scheduled to close at the end of August 2009. On acquisition, Whiterock’s portfolio will total 3.4 million square feet across 44 properties, with a weighted average lease term of over 7 years.
The BuzzBuzzHome Team