CAPREIT Continues To Make Progress on Strategic Repositioning Program
May 11 2023 - 5:00PM
Canadian Apartment Properties Real Estate Investment Trust
(“CAPREIT”) (TSX:CAR.UN) announced today that it has completed the
disposition of a non-core portfolio containing 180 residential
suites and one commercial unit in Montréal, Québec. The properties
were built approximately 50 years ago and were sold for an
aggregate consideration of $27.8 million (excluding disposition
costs). CAPREIT also discharged the $12.4 million mortgage
principal outstanding on the portfolio, which had a remaining term
to maturity of approximately one year and an interest rate of 3.6%
per annum. Net cash proceeds are intended for near-term
re-deployment into more strategically aligned, accretive
opportunities.
CAPREIT further announced today that it has
completed the acquisition of a newly constructed 89-suite
residential building located in central Edmonton, Alberta. CAPREIT
acquired the high-quality property for a purchase price of $27.2
million (excluding transaction costs), which was funded by $6.8
million in cash along with the assumption of the outstanding
principal balance on the associated mortgage of $20.4 million. The
mortgage carries interest at a rate of 2.6% per annum for a
remaining term to maturity of approximately nine years.
A Media Snippet accompanying this announcement is
available by clicking on the image or link below:
“We continue to make good progress on our
strategic repositioning program, with these two transactions
modernizing CAPREIT’s portfolio, increasing the allocation toward
our target new build asset class and enhancing geographical
diversification,” commented Mark Kenney, President and Chief
Executive Officer. “Alberta’s robust macroeconomic profile is
supporting strong and sustainable growth prospects in one of
Canada’s most affordable provinces, and we are excited to be
acquiring a property in this attractive market.”
“We have divested at a sub-4% capitalization
rate and have reinvested at a capitalization rate that is in excess
of 4%,” added Julian Schonfeldt, Chief Investment Officer. “Not
only did we purchase this new construction rental asset at an
attractive price that is below replacement cost, but we also
effectively replaced our one-year 3.6% interest rate mortgage with
a higher value nine-year 2.6% interest rate mortgage.”
ABOUT CAPREITCAPREIT is
Canada’s largest publicly traded provider of quality rental
housing. As at December 31, 2022, CAPREIT owns or has interests in
approximately 67,000 residential apartment suites, townhomes and
manufactured home community sites well-located across Canada and
the Netherlands, with approximately $17 billion of investment
properties in Canada and Europe. 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 STATEMENTSAll 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:
CAPREITMr.
Mark KenneyPresident & Chief Executive Officer(416)
861-9404 |
CAPREITMr.
Stephen CoChief Financial Officer(416) 306-3009 |
CAPREIT Mr.
Julian Schonfeldt Chief Investment Officer(647) 535-2544 |
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