Canadian Apartment Properties Real Estate Investment Trust
TSX : CAR.UN

Canadian Apartment Properties Real Estate Investment Trust

August 08, 2008 11:53 ET

CAP REIT Acquires Ontario Portfolio

TORONTO, ONTARIO--(Marketwire - Aug. 8, 2008) - Canadian Apartment Properties Real Estate Investment Trust ("CAP REIT") (TSX:CAR.UN) announced today that it had acquired a 50% co-ownership interest from CST Corporation ("CST") in a high-quality portfolio of eight properties located in Toronto, Ontario totalling 784 suites.

The portfolio consists of a 137-suite apartment building and a 93-unit luxury townhouse complex in North York, a 111-unit townhouse development in Etobicoke, a complex of four high-rise apartment buildings in East Toronto aggregating 369 suites, along with a 74-suite luxury apartment property on the corner of Chaplin Crescent and Eglinton Avenue West. The total purchase price for CAP REIT's 50% interest of $45.0 million was satisfied by the assumption of existing mortgages of $15.0 million maturing between 2011 and 2019 at an average interest rate of approximately 4.75%, new CMHC-insured mortgages of $14.7 million for five-year terms at an average interest rate of 4.55%, and the balance from CAP REIT's Acquisition Facility. The transaction closed on July 31, 2008. Occupancy in the acquired portfolio was approximately 98% at closing with current rents marginally below market in the area. CAP REIT will provide property management services for the portfolio and will receive property management fees from CST for this service.

"This first class, well maintained portfolio is located close to a number of our current properties, and we will utilize our existing infrastructure to cost effectively manage all the properties while generating a new source of revenue for CAP REIT," commented Thomas Schwartz, President and CEO.

"With the completion of this transaction, we will have acquired a total of 1,101 suites so far this year, putting us on target to achieve our annual growth target. Looking ahead, we will utilize our strong balance sheet and substantial acquisition capacity to continue prudently building the size, strength and critical mass of our high-quality property portfolio and continue to focus on improving the profitability of our portfolio to yield strong Unitholder overall returns," Mr. Schwartz concluded.

As one of Canada's largest residential landlords, CAP REIT (TSX:CAR.UN) is a growth-oriented investment trust owning interests in 27,324 residential suites and two land lease communities comprising 1,267 sites located in or near major urban centres from coast to coast. Since its Initial Public Offering in May 1997, CAP REIT has grown monthly cash distributions per Unit by 51%. For more information about CAP REIT, its business and its investment highlights, please refer to our web site at www.capreit.net.

All statements in this press release that do not relate to historical facts constitute forward-looking statements. These statements represent CAP REIT'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.

Contact Information

  • CAP REIT
    Mr. Michael Stein
    Chairman
    (416) 861-5788
    or
    CAP REIT
    Mr. Thomas Schwartz
    President & CEO
    (416) 861-9404
    or
    CAP REIT
    Mr. Yazdi Bharucha
    CFO & Secretary
    (416) 861-5771
    Website: www.capreit.net