Whiterock REIT Toronto-area office building for $31.5 million

TORONTO – Whiterock Real Estate Investment Trust (TSX:WRK.UN) says it has bought an office complex in Mississauga, Ont., across from Toronto Pearson International Airport for about $31.5 million.

The property owner also said Friday it has raised its credit line to $35 million from $20 million and cut its interest costs as well as refinanced some existing mortgages to improve its balance sheet.

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In addition, the real estate trust issued $10 million worth of corporate debentures due in 2016.

“The acquisition of this property in the Toronto Pearson Airport office node further establishes Whiterock as a leading owner and manager of high-quality office buildings in the Greater Toronto Area,” said Jason Underwood, the Toronto company’s chief executive.

Chief financial officer Kursat Kacira said “the increase in our credit facility and the improvements in the terms provide Whiterock with additional financial flexibility as we pursue further growth opportunities.”

“In addition, the mortgage refinancings recognize the significant embedded equity in our properties and provide us with significant interest rate savings. The new issue of debentures also provides us with an attractive source of unsecured and non-convertible debt capital.”