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

Canadian Apartment Properties Real Estate Investment Trust

November 22, 2010 16:11 ET

Canadian Apartment Properties Real Estate Investment Trust Announces Unit Financing of $125.4 MM

TORONTO, CANADA--(Marketwire - Nov. 22, 2010) -

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

Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN)("CAPREIT") of Toronto, Ontario today announced that it has agreed to sell, subject to regulatory approval, 7,250,000 units for $17.30 per unit for aggregate gross proceeds of $125,425,000 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 1,087,500 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 December 10, 2010.

CAPREIT intends to use the net proceeds of this offering

  1. first to repay a portion of the estimated $178.7 million owing under CAPREIT's acquisition and operating facility as of September 30, 2010, which was utilized by CAPREIT to partially fund eight acquisitions comprising CAPREIT's share of 1,667 residential suites completed since January 10, 2008 with aggregate acquisition costs of $235.8 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 $120 million of the currently drawn acquisition and operating facility will reduce CAPREIT's total debt to gross book value ratio to 59.3% from 63.5% as at September 30, 2010.

CAPREIT has entered into conditional agreements to acquire from two separate vendors approximately 1,300 residential suites in the Greater Vancouver Region and the Greater Montreal Area, for a combined purchase price of approximately $142 million. The closing of such acquisitions will be subject to standard conditions, including completion of satisfactory due diligence. There are no assurances that the conditions to such agreements will be satisfied or those transactions will be completed. There can be no assurance that these proposed acquisitions will be completed. This Offering is not conditional upon completion by CAPREIT of any of the proposed acquisitions.

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 $0.09 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 December, with a record date of December 31, 2010 and a payment date of January 17, 2011.

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.

ABOUT CAPREIT

As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 27,228 residential suites and two manufactured home communities comprising 1,316 land lease sites principally located in and near major urban centres across Canada. For more information about CAPREIT, its business and its investment highlights, please refer to our public disclosure which can be found under our profile at www.sedar.com.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

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.

Contact Information

  • Canadian Apartment Properties Real Estate Investment Trust
    Mr. Thomas Schwartz
    President & CEO
    (416) 861-9404
    or
    Canadian Apartment Properties Real Estate Investment Trust
    Mr. Michael Stein
    Chairman
    (416) 861-5788
    or
    Canadian Apartment Properties Real Estate Investment Trust
    Mr. Richard J. Smith
    Chief Financial Officer
    (416) 861-5771