CAPITAL WAPITI INC.
TSX VENTURE : WTI.P

February 20, 2008 10:12 ET

Capital Wapiti Inc. Agrees to Purchase an Industrial Property in Winnipeg, Manitoba

MONTREAL, QUEBEC--(Marketwire - Feb. 20, 2008) - Capital Wapiti Inc. ("Wapiti" or the "Corporation") (TSX VENTURE:WTI.P) announces that it entered into a conditional agreement to purchase an industrial property in Winnipeg, Manitoba. Located at 560 Camiel Sys Street, in the St. Boniface Industrial Park, the property comprises a 30,687 square-foot building sitting on 6.35 acres of land.

The building was completed in July, 2007. The building is occupied by Fedex Ground Package System, Inc. The building comprises 29,245 square feet for mail and package sorting as well as 1,442 square feet of office space. FedEx's lease runs until July 14, 2017. FedEx has two renewal options of five years at a predetermined rent. It also has an option to expand the premises by another 2,753 square feet, at a rent to be negotiated.

A capitalization rate of 8.11%

The purchase price is $4,525,000, which represents a going in capitalization rate of 8.11%. The transaction will be immediately accretive to Wapiti.

The transaction is conditional upon the results of Wapiti's due diligence. Wapiti expects to be able to waive this condition by mid-March, and to close the transaction in April.

Wapiti already owns 139,684 square feet of industrial property and expects to close soon the acquisition of 29,074 square feet in Halifax. Added to these properties, the Winnipeg transaction would bring the total property owned by Wapiti to 199,445 square feet. Total purchase price for all four properties would be $17,155,000.

"This transaction is in addition to the three planned transactions that Wapiti announced last November", said Mr. Robert Berger, President and Chief Operating Officer of Wapiti. "We are still conducting negotiations on another building in Eastern Canada which, together with the Winnipeg property, would bring the total to more than 250,000 square feet if they lead to a transaction. We are delivering on our commitment to rapidly grow our asset base through the acquisition of quality assets at attractive capitalization rates, providing a stable income stream with minimal management responsibilities."

Forward-Looking Statements:

This press release contains forward-looking statements. Forward-looking statements are subject to risk, uncertainties and assumptions. Although the Directors of Wapiti believe that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Some of the factors and risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein include the impact of general economic conditions, industry conditions, governmental regulation, environmental risk, competition from other industry participants, stock market volatility, the ability to access sufficient capital from internal and external sources and the risk of fluctuation and variation in actual operating results, which variation may be material. A full description of these risk factors can be found in Wapiti final prospectus dated April 5, 2007 and Filing Statement dated October 15, 2007 which are available electronically at www.sedar.com.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included herein are made as of the date hereof and Wapiti does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise.

About Capital Wapiti Inc.

Capital Wapiti is a Canadian corporation that invests exclusively in industrial properties in primary and secondary markets primarily in Eastern Canada. Including an unconditional agreement expected to close shortly, the Corporation owns three properties totalling 165,000 sq. ft. Additional information on the Corporation is available at www.capitalwapiti.com and on the SEDAR website at www.sedar.com.

The TSX Venture Exchange does not accept responsibility for adequacy or accuracy of this press release.

Contact Information

  • Capital Wapiti Inc.
    Mr. Robert Berger
    President and Chief Operating Officer
    514-868-9550
    rberger@capitalwapiti.com
    or
    Capital Wapiti Inc.
    Mr. Serge Beaudet
    Chief Financial Officer and Secretary
    514-892-2936