ING Agrees to $31 Million Sale Leaseback of Office Complex In Quebec

Whiterock REIT Web Site - February 3, 2006

Whiterock Real Estate Investment Trust has entered into a long term sale-leaseback agreement with ING Insurance Company of Canada covering a three-building, 230,000 square foot office complex, in Saint-Hyacinthe, Quebec for approximately $31 million. The lease has a term of 20 years with four, five-year extensions, and is triple net including all structural repairs and maintenance expenses.

"Whiterock is very pleased to enter into a long-term transaction with ING, the largest provider of property and casualty insurance in Canada with an A+ credit rating by Standard & Poor's."

The office complex is located at 2450 rue Girouard Ouest, and 450 rue St-Joseph and will be leased back in its totality to ING until 2026. 2450 rue Girouard Ouest consists of two buildings connected by an elevated walkway, of which one building totaling 115,000 square feet was newly constructed in 2005, and the second building totaling 85,000 square feet is currently undergoing significant renovations by the tenant. The third building, totaling approximately 30,000 square feet was significantly upgraded in 1990, and again in 2005. The properties also contain approximately 560 surface parking stalls, all of which are utilized by ING.

Whiterock intends to finance the going-in 7.5% cap rate acquisition with 20 year fixed rate debt for approximately 75% of the purchase price. Sphere: Related Content