Wilmington Capital Management Inc.
TSX : WCM.A
TSX : WCM
TSX : WCM.B

Wilmington Capital Management Inc.

February 02, 2011 16:07 ET

Wilmington Announces Acquisition of Interest in Self-Storage Facilities in Alberta, British Columbia and Ontario

TORONTO, ONTARIO--(Marketwire - Feb. 2, 2011) - Wilmington Capital Management Inc. ("Wilmington") (TSX:WCM)(TSX:WCM.A)(TSX:WCM.B) announced today that through a private real estate trust in which Wilmington has an interest (the "Trust") it has acquired (the "Acquisition") a 46.15% indirect interest in a portfolio of 5 self-storage facilities and 2 development properties located in Alberta, British Columbia and Ontario (the "Property Portfolio"). The Trust will itself hold the Property Portfolio through a subsidiary limited partnership (the "Partnership"). The aggregate cost of the Property Portfolio will amount to approximately $22,500,000 and is funded by way of an assumption of debt, equity of $5,000,000, funds from the Trust of $400,000 and a bridge loan in the amount of $3,250,000. Wilmington's share of the cash consideration to complete the Acquisition is $4,125,000 which is being funded by providing equity to the Trust in the amount of $2,500,000 and a bridge loan to the Trust in the amount of $1,625,000. An additional 46.15% indirect interest will be acquired by another investor and its share of the cash consideration to complete the Acquisition is $4,125,000 which is being funded by providing equity to the Trust in the amount of $2,500,000 and a bridge loan to the Trust in the amount of $1,625,000.

The Partnership has also entered into two term credit facilities (the "Term Facilities") in the amount of $12,500,000 and $1,350,000, respectively. The Term Facilities are secured by certain of the properties in the Property Portfolio.

The Partnership and the Property Portfolio will be professionally managed by Real Storage Management Inc., an entity whose purpose is to provide management services to the Partnership and other self-storage facilities owned by the Trust. Wilmington believes the Acquisition is a major step in meeting its principal objective of acquiring and holding assets that are capable of providing stable cash flows and value creation over the longer term. Wilmington also believes that there will be further opportunities to invest in additional properties in the Canadian self-storage industry that meet its objectives.

Forward Looking Statements

This press release contains forward looking statements. More particularly, this press release contains statements concerning the closing of the Acquisition. Although Wilmington believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Wilmington can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

The forward looking statements contained in this press release are made as of the date hereof and Wilmington undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Reference should also be made to the most recent annual information form for a description of the major risk factors.

Contact Information

  • Wilmington Capital Management Inc.
    Francis Cooke
    Treasurer
    (403) 800-0869