Canadian Apartment Properties Real Estate Investment Trust Announces Closing of $151.7 MM Equity Financing

TORONTO, ONTARIO--(Marketwire - Oct. 31, 2011) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN) ("CAPREIT") announced today that it has closed its previously announced issue and sale of 7,475,000 units, which includes the exercise in full of the 15% over-allotment option, for $20.30 per unit for aggregate gross proceeds of $151.7 million. The offering was sold through a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis. Subscribers under this offering will be eligible to receive the October monthly distribution of $0.09 per unit from CAPREIT, with a record date of October 31, 2011 and a payment date of November 15, 2011.

CAPREIT intends to use the net proceeds of the offering to repay a portion of the approximately $198 million owing under its acquisition and operating facility as of September 30, 2011. Such facility was utilized by CAPREIT to fund six acquisitions comprising 2,467 residential suites completed between December 10, 2010 and September 30, 2011 with aggregate acquisition costs of approximately $289 million.

"We have financed our portfolio growth and value enhancing capital investment programs with debt and internally generated funds since our last equity offering in December 2010," commented Thomas Schwartz, President and CEO. "With the proceeds from this offering, we have significantly strengthened our balance sheet and positioned ourselves to capitalize on future investments aimed at enhancing Unitholder value."

As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 30,821 residential units, comprised of 29,496 residential suites and two manufactured home communities comprising 1,325 land lease sites located in and near major urban centres across Canada. Since its Initial Public Offering in May 1997, CAPREIT has grown monthly cash distributions per Unit by 51%. 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.

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.