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

Canadian Apartment Properties Real Estate Investment Trust

August 04, 2005 09:10 ET

Canadian Apartment Properties Real Estate Investment Trust Closes Previously Announced Financing Of $60.065 MM

TORONTO, ONTARIO--(CCNMatthews - Aug. 4, 2005) -

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

Canadian Apartment Properties Real Estate Investment Trust ("CAP REIT")(TSX:CAR.UN) of Toronto, Ontario announces that it has closed the previously announced sale of 4,100,000 Units for $14.65 per Unit for aggregate gross proceeds of $60,065,000 to a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis.

CAP REIT intends to use the net proceeds of this financing to repay a portion of the amounts owing under CAP REIT's acquisition and operating facilities, of which approximately $28 million will be used to acquire the L.S.R. Apartment Portfolio, and the balance to fund CAP REIT's capital improvement program, future acquisitions and for general business purposes.

The LSR Apartment Portfolio includes 1,431 residential suites in the mid-tier category in 34 buildings in the greater Montreal area. The Portfolio includes 7 high-rise buildings, 27 low-rise buildings and approximately 27,800 square feet of commercial space in Longueuil (693 suites in 26 buildings), Ville St. Laurent-Ahuntsic (646 suites in four buildings) and downtown Montreal (110 suites in four buildings). The LSR Apartment Portfolio is being purchased for approximately $80 million (including acquisition costs and land transfer tax of approximately $1.7 million) with $52.2 million of 5 to 7 year mortgages that will be placed on the properties at closing. The LSR closing is expected to occur on or about September 1, 2005 and CAP REIT has completed its due diligence.

"We are pleased to be increasing our presence in the strong Montreal apartment market and enhancing the overall geographic diversification of our portfolio," commented Thomas Schwartz, President and CEO.

With the completion of this acquisition, CAP REIT's properties in the Province of Quebec will total 4,213 suites or 16.4% of the overall portfolio, of which 3,127 suites will be in Montreal and 1,086 suites will be in Quebec City.

CAP REIT (TSX:CAR.UN) is a growth-oriented investment trust owning interests in 24,212 residential suites located in major urban centres from coast to coast across the country. Since its Initial Public Offering in May 1997, CAP REIT has grown monthly distributions per Unit by 51%.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Certain statements in this press release may constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of CAP REIT to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "may," "will," "expect," "anticipate," "project," "believe," "plan" and other similar terminology. The risks and uncertainties are detailed from time to time in reports filed by CAP REIT with the securities regulatory authorities in all of the provinces and territories of Canada to which recipients of this press release are referred for additional information concerning CAP REIT, its prospects and the risks and uncertainties relating to CAP REIT and its prospects. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of CAP REIT to be materially different from those contained in forward-looking statements. The forward-looking information contained in this press release is current only as of the date of this press release. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.


Contact Information

  • CAP REIT
    Mr. Michael Stein
    Executive Chairman
    (416) 861-5788
    or
    CAP REIT
    Mr. Thomas Schwartz
    President & CEO
    (415) 861-9404
    or
    CAP REIT
    Mr. Yazdi Bharucha
    CFO & Secretary
    (416) 861-5771