Whiterock Real Estate Investment Trust (TSX: WRK.UN) has agreed to purchase Sussex Centre in Mississauga and London City Centre, with a total rentable area of about 1.2 million square feet. Whiterock will have minority ownership and manage the properties.
Whiterock Real Estate Investment Trust (TSX: WRK.UN) announced this week it has agreed to acquire office towers in Mississauga and London, Ontario with a total rentable area of about 1.2 million square feet.
Toronto-based Whiterock said it will acquire Sussex Centre, a two-tower office complex in Mississauga for $157 million, before closing costs. It will also buy London City Centre for about $61 million, before closing costs.
The properties will be purchased in co-ownership with Return on Innovation Capital Ltd., with Whiterock providing property management.
Under the deal, Whiterock will own 49.9 per cent of Sussex Centre, located near Square One in Mississauga. Its largest tenant is Edward D. Jones & Co. Whiterock will also own 40 per cent of London City Centre, of which 64 per cent is leased by TD Bank.
In a separate announcement, Whiterock stated it has closed a public equity offering from which it will raise about $75 million to fund acquisitions.
The offering, underwritten by a syndicate led by TD Securities Inc., is for 5.64 million trust units at a price of $13.30 per unit. Whiterock intends to use the proceeds to fund the acquisitions of Sussex Centre, London City Centre and “other potential future acquisitions, as well as for general trust purposes.”
DCN DIGITAL MEDIA
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