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

Canadian Apartment Properties Real Estate Investment Trust

May 26, 2006 14:38 ET

CAP REIT Acquires Ontario Apartment Portfolio

TORONTO, ONTARIO--(CCNMatthews - May 26, 2006) - Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN) ("CAP REIT") announced today that it had completed the acquisition of two apartment buildings in Orangeville, Ontario containing 93 suites. The purchase price was approximately $7.0 million, and included an existing first mortgage of approximately $1.7 million due April 1, 2009 with an effective interest rate of 4.48%. The purchase price of approximately $75,000 per suite is well below replacement cost in the region.

The two contiguous properties are well located with a wooded conservation area to the north, single family homes to the south and west, and a shopping centre to the east. Orangeville, a small picturesque city situated approximately 50 km north of Toronto, has become a destination of choice for seniors and others wishing to live in a more rural and "small town" environment but remain close to the amenities offered by the Greater Toronto Area. The properties acquired are fully occupied primarily with a seniors population. Tenants pay all utilities in these buildings.

"We continue to expand our presence in Ontario, one of the country's strongest rental markets over the long term," commented Thomas Schwartz, President and Chief Executive Officer. "So far this year we have acquired 557 suites, and remain confident we will achieve our annual goal of purchasing between 1,500 and 2,000 suites again this year."

As one of Canada's largest residential landlords, CAP REIT (TSX - CAR.UN) is a growth-oriented investment trust owning interests in 25,809 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
    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