/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES/
WINNIPEG, MB, Oct. 31,
2022 /CNW/ - Marwest Apartment Real Estate Investment
Trust ("Marwest Apartment REIT" or the "REIT") (TSXV:
MAR.UN) announced today that it has completed the purchase of a
newly constructed 153 unit apartment building in Winnipeg, Manitoba called Prairie View Pointe
("The Property") for $42,000,000.
The fully leased Property was completed in 2021 and consists of
47 one-bedroom, 87 two-bedroom, and 19 three-bedroom
apartments. The units range between 532 to 1,043 square feet
in size and include modern designs with open-concept floorplans,
quartz countertops, stainless steel appliances and private
balconies. Resident amenities include an on-site fitness
facility, rooftop patio, movie room, games room, Starbucks kiosk
and pet wash station. The Property includes 83 underground
and 149 surface parking stalls. The property is located near
shopping, transit, parks, recreation facilities and schools.
"This acquisition fits with the new generation product that the
REIT currently owns. We are pleased to acquire the property
along with the existing mortgage at a tremendous rate compared to
what is available currently in the market. Prairie View
Pointe is located in a prime development area in North Winnipeg, and offers many amenities to
its residents," commented William
Martens, CEO of Marwest Apartment REIT.
The acquisition was funded through a combination of the
following:
- the assumption of $32.96 million
CMHC insured first mortgage secured by the Property, with an
interest rate of 2.99% and with just under 5 years remaining on its
term;
- cash payment of approximately $9.08
million obtained from the following sources:
-
- the net proceeds of a $16.31
million CMHC insured first mortgage secured by 72 townhome
units at the Brio Brownstones site, with an interest rate of 3.92%
and with an approximate 10 year term, and which replaced a non-CMHC
insured mortgage in the principal amount of $12.50 million that was set to expire in
October 2023;
- the net proceeds of a new $4.00
million second mortgage secured by the Kenwood Apartments,
with an interest rate of 5.59% with a 5 year term; and
- cash on hand of approximately $2.50
million.
On closing of the acquisition and taking into account the new
mortgages placed, the REIT has extended its weighted average
term-to-maturity of its debt from 71.83 months to 81.27 months.
There is no change to the distribution policy of Marwest
Apartment REIT, which currently provides for distributions at
$0.015 per unit on an annualized
basis, paid monthly.
About Marwest Apartment REIT
The REIT is an unincorporated open-ended trust governed by the
laws of the Province of Manitoba.
The REIT was formed to provide Unitholders with the opportunity to
invest in the Canadian multi-family rental sector through the
ownership of high-quality income-producing properties, with an
initial focus on stable markets throughout Western Canada.
Marwest REIT's management team and Trustees have over 100 years
of combined experience in multi-residential real estate. They bring
a strong combination of development, construction, management, and
financing experience, along with significant governance expertise.
The REIT has an external asset and property management agreement
through the Marwest Group of Companies. The Marwest Group of
Companies is a fully integrated real estate group that specializes
in development, construction, and property management. Now in its
third generation of operations, the Marwest Group has developed
over 12,000 units, and currently manages over 2,500 units,
providing the REIT with an array of top calibre tools, industry
know-how and strong relationships. Marwest Apartment REIT will
continue to benefit from the expertise and strong infrastructure
that is currently in place through the Marwest Group.
Forward-looking Statements
The information in this news release includes certain
information and statements about the REIT's current monthly cash
distribution policy that constitute forward‐looking statements.
These statements are based upon assumptions that are subject to
significant risks and uncertainties. Because of these risks
and uncertainties and as a result of a variety of factors, the
actual results, expectations, achievements or performance may
differ materially from those anticipated and indicated by these
forward‐looking statements. A number of factors could cause actual
results to differ materially from these forward‐looking
statements. The declaration and/or payment of future cash
distributions will be dependent upon a number of factors, including
but not limited to the financial performance, financial condition
and financial requirements of the REIT. Although management
of the REIT believes that the expectations reflected in forward‐
looking statements are reasonable, it can give no assurances that
the expectations of any forward‐ looking statements will prove to
be correct. Except as required by law, the REIT disclaims any
intention and assumes no obligation to update or revise any
forward‐looking statements to reflect actual results, whether as a
result of new information, future events, changes in assumptions,
changes in factors affecting such forward‐looking statements or
otherwise.
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this news release.
The Trust Units are not registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") and
may not be offered or sold within the
United States or to or for the account or benefit of U.S.
persons, except in certain transactions exempt from the
registration requirements of the U.S. Securities Act. This press
release does not constitute an offer to sell, or the solicitation
of an offer to buy, securities of the REIT in the United States or in any other
jurisdiction.
SOURCE Marwest Apartment Real Estate Investment Trust