TORONTO, ONTARIO--(Marketwired - Oct. 22, 2013) - Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) announced today that it had acquired a portfolio of 240 residential suites and 500 land lease sites in four communities located in Charlottetown and Cornwall, Prince Edward Island. CAPREIT paid approximately $34.9 million for the portfolio, satisfied by the assumption of mortgage debt of approximately $10.3 million bearing a weighted average interest rate of 4.5%, with the balance in cash from CAPREIT's Acquisition and Operating credit facility.
The apartment buildings are located in quiet residential neighbourhoods close to downtown Charlottetown. Waterview Heights is a four-building complex of 60 suites with spectacular ocean views located close to major shopping. River Ridge Heights is a luxury, two-building complex with 108 suites overlooking the Hillsboro River minutes from downtown. Adjacent to the apartment property is River Ridge Estates containing 78 manufactured home land lease sites as well as a large undeveloped area with the potential to add another 117 sites over time. Included in the portfolio is Chateau Estates, a 167 land lease site property in Cornwall, Prince Edward Island.
"We are very pleased to be making our first acquisition in Prince Edward Island, further strengthening and diversifying our property portfolio and entering a new market that we are confident will provide additional opportunities for growth in the future," stated Thomas Schwartz, President and CEO. "Most importantly, with the strong capitalization rates being generated by the portfolio, the transaction will be immediately accretive to our Funds from Operations."
As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 39,242 residential units, comprising 35,372 residential suites and 18 manufactured home communities comprising 3,870 land lease sites located in and near major urban centres across Canada and in Dublin, Ireland. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.capreit.net and 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. The closing of the acquisition described in this press release is subject to standard closing conditions, including obtaining third party deliverables, which are beyond CAPREIT's control. There are no assurances that the conditions to the agreement will be satisfied or the proposed acquisition will be completed on its current terms or at all.