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

Canadian Apartment Properties Real Estate Investment Trust

February 01, 2006 17:20 ET

CAP REIT Acquires Apartment and Townhouse Portfolio

TORONTO, ONTARIO--(CCNMatthews - Feb. 1, 2006) - Canadian Apartment Properties Real Estate Investment Trust ("CAP REIT")(TSX:CAR.UN) announced today that it had completed the acquisition of six apartment buildings and six townhouse complexes in Etobicoke, Ontario totaling 464 suites, including 107 townhouses. The purchase price was approximately $43.9 million and new five-year mortgage financing of $29.0 million at 4.3% was raised. CAP REIT used its acquisition facility to fund the balance of the purchase price.

The portfolio is well located on approximately 18.4 acres of land and provides a quiet, secure residential environment with excellent access to numerous neighboring amenities and activities. With all of the properties clustered, CAP REIT will be able to take advantage of the considerable economies of scale and operating synergies available. The portfolio has been well maintained and managed with recent upgrades and improvements within both the apartment and townhouse suites, as well as new security surveillance, landscaping, playgrounds and common area facilities.

"This acquisition is an excellent example of how we are leveraging our significant experience in the real estate business to create long-term value for our Unitholders," commented Thomas Schwartz, President and Chief Executive Officer. "Late last year we sold a number of small, non-core properties that did not fit our current portfolio or operating profile. We had maximized the value we could generate from these buildings, and, as a testament to the success of our past investment strategies, produced a gain on the sale of approximately $10.0 million or $0.19 per Unit."

"Our goal is to continue adding between 1,500 and 2,000 suites to our portfolio on an annual basis. While we have not yet fully invested the proceeds from the sale of properties and the equity financing, we are well on our way to achieving our growth target in 2006," Mr. Schwartz concluded.

As one of Canada's largest residential landlords, CAP REIT (TSX:CAR.UN) is a growth-oriented investment trust owning interests in 25,716 residential suites located in major urban centres from coast to coast. Since its Initial Public Offering in May 1997, CAP REIT has grown monthly cash distributions per Unit by 51%. For more information about CAP REIT, its business and its investment highlights, please refer to our web site at www.capreit.net.

Contact Information

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