Yahoo Finance CAPREIT Announces Strategic Disposition of East York Property and Acquisition of Two High-Quality New-Build Properties
TORONTO, Aug. 03, 2022 (GLOBE NEWSWIRE) -- Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it has entered into an agreement to dispose of a property located in East York, Ontario. The property, which was built in 1974, is comprised of 253 residential units and will be sold for consideration of $90.1 million (excluding disposition costs). Upon closing, expected later this month, proceeds will be used in part to repay the existing mortgage on the portfolio of approximately $22.9 million. The remaining net proceeds will be redeployed to fund the acquisition of new-build properties, as outlined below, pursuant to CAPREIT’s active asset management program.
CAPREIT also announced that it has completed the acquisition of two high-quality new-build apartment properties located in strategic markets with strong fundamentals, further enhancing CAPREIT’s geographic diversification. On July 19, 2022, CAPREIT acquired 235 residential units built in the past year in Laval, Quebec (a suburb of Montreal), which are expected to be fully leased by 2023. The amenity-rich property was purchased for $102.0 million (excluding transaction costs). On July 26, 2022, CAPREIT acquired another 65 residential units in a promising and desirable neighbourhood in Edmonton, Alberta. The property, which was built in 2021 and is currently 98% leased, was purchased for $22.5 million (excluding transaction costs). Both properties were acquired absent of any mortgage financing.
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“CAPREIT continues to execute on its active management strategy to maximize value for all of its stakeholders, as showcased in these transactions. This repositioning achieves the strategic objective of rejuvenating the portfolio by disposing of older, value-add properties, and re-investing the capital into accretive, new-build properties in underrepresented markets”, commented Mark Kenney, President and CEO. “The ongoing strategic revitalization of our portfolio into these new-build assets stimulates rental markets, which, in turn, will attract new capital and development into the community, contributing to increased supply.”
“Not only are we recycling our capital into accretive new-build opportunities, while enhancing diversification, we are also deploying the proceeds from our strategic dispositions into our NCIB program, for which we have already invested $85 million at an attractive weighted average purchase price of approximately $47 per Trust Unit”, added Julian Schonfeldt, Chief Investment Officer. “This reflects CAPREIT’s commitment to enhancing returns, increasing the quality of the portfolio and supporting the creation of new supply.”
ABOUT CAPREIT
CAPREIT is Canada’s largest publicly-traded provider of quality rental housing. CAPREIT currently owns or has interests in approximately 67,000 residential apartment suites, townhomes and manufactured housing community sites well-located across Canada and the Netherlands, with approximately $18 billion of assts under management globally. For more information about CAPREIT, its business and its investment highlights, please visit our website at www.capreit.ca and our public disclosure which can be found under our profile at www.sedar.com.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS
All statements in this press release that do not relate to historical facts constitute forward-looking statements. These statements represent CAPREIT’s intentions, plans, expectations and beliefs and are subject to certain risks and uncertainties that could result in actual results differing materially from these forward-looking statements. These risks and uncertainties are more fully described in regulatory filings that can be obtained on SEDAR at www.sedar.com.
For more information, please contact:
CAPREIT | CAPREIT | CAPREIT |
Mr. Mark Kenney | Mr. Stephen Co | Mr. Julian Schonfeldt |
President & Chief Executive Officer | Interim Chief Financial Officer | Chief Investment Officer |
(416) 861-9404 | (416) 306-3009 | (416) 995-2196 |
