Canadian Apartment Properties Real Estate Investment Trust

Canadian Apartment Properties Real Estate Investment Trust

March 03, 2015 16:26 ET

Canadian Apartment Properties Real Estate Investment Trust Announces Public Unit Financing of $140.6 MM

TORONTO, ONTARIO--(Marketwired - March 3, 2015) -


Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) of Toronto, Ontario announced today that it has agreed to sell, subject to regulatory approval, 5,050,000 units for $27.85 per unit for aggregate gross proceeds of $140,642,500 to a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis. CAPREIT has granted the underwriters an over-allotment option (the "Over-Allotment Option"), exercisable in whole or in part up to 30 days after Closing, to purchase up to an additional 505,000 units to cover over-allotments, if any.

CAPREIT will, within the next few days, file with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada, a preliminary short form prospectus relating to the issuance of the units. Closing of the Offering is expected to take place on or about March 25, 2015.

CAPREIT intends to use the net proceeds of this offering

  1. first to repay approximately $134 million owing under CAPREIT's acquisition and operating facility, which was utilized by CAPREIT to, among other uses, partially fund previous acquisitions completed since January 2015 with aggregate acquisition costs of $158 million; and

  2. the remainder, if any, for future acquisitions, capital expenditures and for general trust purposes.

Upon closing of the offering, and excluding the effect of the Over-Allotment Option, the repayment of approximately $134 million of the currently drawn acquisition and operating facility, with the net proceeds of this offering, will reduce CAPREIT's total debt to gross book value ratio to 45.3% from 47.5% as at December 31, 2014, after giving effect to subsequent events.

CAPREIT intends to make monthly cash distributions to Unitholders of record on each record date, on or about the 15th day of the month following the record date. CAPREIT's current monthly cash distribution is $0.09833 per unit. The first cash distribution to which purchasers of the units under this Offering will be entitled to participate will be for the month of March, with a record date of March 31, 2015 and a payment date of April 15, 2015.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the United States absent registration or pursuant to applicable exemption from registration.


As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 41,824 residential units, comprising 35,540 residential suites and 30 manufactured home communities comprising 6,284 land lease sites located in and near major urban centres across Canada. For more information about CAPREIT, its business and its investment highlights, please refer to our website at and our public disclosure, which can be found under our profile at


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

Contact Information

  • Mr. Thomas Schwartz
    President & CEO
    (416) 861-9404

    Mr. Michael Stein
    (416) 861-5788

    Mr. Scott Cryer
    Chief Financial Officer
    (416) 861-5771