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

Canadian Apartment Properties Real Estate Investment Trust

October 01, 2007 10:21 ET

CAP REIT Expands Presence in Western Canada

TORONTO, ONTARIO--(Marketwire - Oct. 1, 2007) - Canadian Apartment Properties Real Estate Investment Trust ("CAP REIT") (TSX:CAR.UN) announced today that it has acquired eight apartment buildings from TransGlobe Property Management Services Ltd. ("TransGlobe") containing an aggregate of 748 suites well located in British Columbia and Alberta. The total purchase price was approximately $94.6 million, including new CMHC insured mortgages of $61.2 million for a five-year term at a weighted average interest rate of 4.73%. Occupancy in the acquired portfolio is currently 100%.

CAP REIT has established strong regional operating centres and property management teams in Vancouver and Calgary. These new properties will be managed by this existing operating structure, enhancing the operating synergies and economies of scale within these regions.

Holly Acres is a 12-storey quality high-rise apartment building in Calgary, Alberta. Comprised of 139 suites, this property is within walking distance of the University of Calgary and close to numerous parks, shopping, schools and The Children's Hospital.

Three of the properties are situated in the high-growth Coquitlam neighborhood of the Greater Vancouver Region. The Park Regency is a three-storey, 50-suite apartment building with easy access to buses and the Skytrain. Sydney Place is a six-storey high-rise building comprised of 74 suites and offering such amenities as tennis and basketball courts. The third property, Cypress Gardens, is a three-storey low rise building containing 54 suites close to Blue Mountain Park, the Vancouver Golf Club and Lake Como Park.

Also included in the portfolio is Sherbrooke Manor, a 60-suite three-storey property located close to an existing CAP REIT building in New Westminster, a residential suburb of the Greater Vancouver Region. This quality building is close to public transportation, parks, and sporting venues.

CAP REIT has also entered the dynamic Victoria, British Columbia market with the purchase of three properties aggregating 371 suites. This portfolio comprising low-rise, well-maintained buildings situated on Gorge Road East, includes numerous amenities and is situated close to a major hospital as well as walking trails, shopping, parks and waterfront access.

In conjunction with this acquisition transaction, and to further enhance CAP REIT's geographic diversification, CAP REIT also announced today that TransGlobe has waived due diligence conditions and will purchase from CAP REIT eleven non-core Ontario and Quebec properties totalling 1,478 suites. This sale transaction is scheduled to close in mid-January 2008 when further details will follow.

"This creative and strategic transaction will help to achieve our goal of further diversifying our portfolio while expanding in markets with increased growth potential," commented Thomas Schwartz, President and Chief Executive Officer. "Importantly, while we are strengthening our presence in these strong Western Canadian markets, we are doing so with little increase in our operating costs as these properties will be managed by our existing operations infrastructure."

With the completion of this acquisition, CAP REIT's portfolio in British Columbia will aggregate 1,488 suites, or approximately 5.3% of the total portfolio. The Alberta portfolio will increase to 1,380 suites, or 5.0% of the total portfolio.

As one of Canada's largest residential landlords, CAP REIT (TSX:CAR.UN) is a growth-oriented investment trust owning interests in 27,853 residential suites located in or near major urban centres from coast to coast and two adult lifestyle land lease communities comprising 1,233 sites located in Ontario. 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