Canadian Apartment Properties Real Estate Investment Trust

Canadian Apartment Properties Real Estate Investment Trust

October 18, 2007 16:48 ET

Canadian Apartment Properties Real Estate Investment Trust Announces Unit Financing of $99.8 MM

TORONTO, ONTARIO--(Marketwire - Oct. 18, 2007) -


Canadian Apartment Properties Real Estate Investment Trust ("CAP REIT") (TSX:CAR.UN) of Toronto, Ontario today announced that it has agreed to sell, subject to regulatory approval, 5,350,000 Units for $18.65 per Unit for aggregate gross proceeds of $99,777,500 to a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis.

CAP REIT 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 November 7, 2007.

CAP REIT intends to use the net proceeds of this offering

(i) first to repay a portion of the estimated $159.2 million owing under CAP REIT's Acquisition and Operating Facilities as of June 30, 2007 (after giving effect to property acquisitions completed since that date), which were utilized by CAP REIT to partially fund five acquisitions completed since August 15, 2006 with aggregate acquisition costs of $259.2; and

(ii) the remainder, if any, for future acquisitions, capital expenditures and for general trust purposes.

CAP REIT 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. CAP REIT'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 November, with a record date of November 30, 2007 and a payment date of December 15, 2007.

The Units being offered have not been and will not be registered under the United States Securities Act of 1933 and state securities laws. Accordingly, the Units may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration.

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 distributions per Unit by 51%.

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

Contact Information

    Mr. Thomas Schwartz
    President & CEO
    (416) 861-9404
    Mr. Michael Stein
    (416) 861-5788
    Mr. Yazdi Bharucha
    CFO & Secretary
    (416) 861-5771