TORONTO, ONTARIO--(Marketwire - June 29, 2012) - Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) announced today that it has completed the previously- announced 3,562 suite acquisition of 14 properties located in the Greater Toronto Area, Southwestern Ontario, Montréal Region, Québec City and Halifax. The purchase price for the properties of approximately $455 million (including transaction costs) was satisfied by: i) the assumption of approximately $184 million in mortgages at a weighted average stated interest rate of 3.99% with a weighted average term to maturity of 2.6 years; and ii) approximately $271 million from the proceeds of CAPREIT's recent equity offering and the balance from the Acquisition and Operating Facility.
The acquisition is pursuant to an agreement with Starlight Investments Ltd. ("Starlight") to acquire the properties upon the closing of the announced transaction between Starlight and TransGlobe Apartment Real Estate Investment Trust which was approved by TransGlobe Unitholders at a Special Unitholder Meeting held on Wednesday, June 27, 2012.
With the completion of this acquisition, CAPREIT's geographic distribution of its residential suites and sites is as follows: Greater Toronto Area (16,166 or 44.6%), Other Ontario (7,257 or 20.0%), Québec (6,184 or 17.0%), British Columbia (2,893 or 8.0%), Nova Scotia (1,588 or 4.4%), Alberta (1,698 or 4.7%) and Saskatchewan (487 or 1.3%), with the majority being mid-tier (49.7%) and luxury (34.2%) properties.
CAPREIT is a growth-oriented investment trust owning interests in multi-unit residential rental properties, including apartments, townhomes and manufactured home communities located in and near major urban centres across Canada. CAPREIT owns interests in 36,273 residential units, comprised of 32,908 residential suites and 14 manufactured home communities ("MHC") comprising 3,365 land lease sites. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.capreit.net 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.