TORONTO, June 21, 2022 (GLOBE NEWSWIRE) — Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it has completed the sale of two properties in Scarborough, Ontario and two properties in Ottawa, Ontario totaling 793 apartment suites. The two portfolios were sold for total consideration of $200.1 million, well above current IFRS values. Existing mortgages on the sold properties totaling approximately $57.8 million were either repaid or assumed by the purchasers.
CAPREIT also announced today that on May 4, 2022 it acquired a brand-new, luxury property containing 36 apartment suites and 76 townhomes in Kanata, Ontario, a major suburb close to Ottawa with immediate access to the Trans-Canada Highway. Occupancy at the property was 98.2% at closing. CAPREIT paid $43.7 million for the property, funded by the assumption of an existing 2-year $26.5 million mortgage incurring an attractive 2.4% interest rate, with the balance funded by CAPREIT’s Acquisition and Operating Facility.
“Once again these transactions demonstrate the value we are generating for our Unitholders through our active property management programs,” commented Mark Kenney, President and CEO. “We had maximized value on these properties and believe the very strong capitalization rate we generated on the sales allow the funds to be reinvested in more accretive growth opportunities, including repurchasing Trust Units for cancelation under our current Normal Course Issuer Bid.”
“We have seen these communities thrive through our value-add initiatives, to the point where we are extremely confident in their long-term, self-sustaining quality and safety. This success allows us to expand our commitment to increasing the supply of new and affordable homes, as we look elsewhere for opportunities to similarly invest and improve many more neighbourhoods,” Mr. Kenney concluded.
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 assets 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:
Mr. Mark Kenney
President & CEO
Mr. Stephen Co
Interim Chief Financial Officer