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

Canadian Apartment Properties Real Estate Investment Trust

August 12, 2008 09:39 ET

CAP REIT To Acquire British Columbia Apartment Property

TORONTO, ONTARIO--(Marketwire - Aug. 12, 2008) - Canadian Apartment Properties Real Estate Investment Trust ("CAP REIT") (TSX:CAR.UN) announced today that it had waived conditions to acquire a 137-suite 10 storey apartment building in Victoria, British Columbia. The property is well-located on the edge of downtown and close to major transportation routes and services. The expected purchase price of $14.2 million will be satisfied by new CMHC-Insured financing of approximately $10.0 million for a five-year term, with the balance from the Acquisition Facility. The closing is expected on August 29, 2008. Occupancy is currently 100%, and residents pay their own utility costs. Current average rents are well below market, and management expects to achieve significant increases on suite turnover.

"We are pleased to be acquiring this valuable property and further diversifying our portfolio in one of Canada's strongest rental markets. Once completed, we will have 1,799 suites, or 6.3% of the total portfolio, located in British Columbia. Utilizing our experienced property management team and infrastructure in the region, we look forward to further expanding our presence in this high-growth market," commented Thomas Schwartz, President and CEO.

"With the completion of this transaction, we are well on our way to achieving our annual growth target for the tenth consecutive year. In addition to expanding the size and scale of our property portfolio, our focused diversification strategies have positioned us in high growth markets, reducing our risk profile and where we can capitalize on infrastructure investments made over the last three years," 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