TORONTO, Oct. 01, 2021 (GLOBE NEWSWIRE) — Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it has completed the acquisition of a portfolio of three apartment buildings located in Québec City aggregating 260 residential suites. CAPREIT paid $72.8 million for the portfolio, funded by CAPREIT’s Acquisition and Operating Facility. Residential occupancy in the portfolio was 99.6% at closing.
Constructed between 2012 and 2015, these modern high-quality properties are located in a small cluster in Québec City overlooking the St. Lawrence River close to Old Québec and other prominent tourist and shopping destinations. Including 24 one-bedroom, 115 two-bedroom and 121 three-bedroom apartments, average suite size across the portfolio is an extensive 1,260 square feet. The properties are fully sprinklered, and all appliances in the suites are resident-owned, reducing future capital investments on resident turnover. All suites are also sub-metered where residents pay their own utility costs, including water consumption.
CAPREIT also announced that on September 29th, 2021 it has sold 124 Broadway Avenue in mid-town Toronto containing 86 suites. CAPREIT acquired the operating lease for the property in 2004 and in December 2019 completed the early buyout of the operating lease to own 100% of the building. The property is being sold to a well-respected developer. CAPREIT is capitalizing on the development potential of the property with a sale price of $52.0 million. CAPREIT will provide the purchaser with a vendor takeback mortgage (“VTB”) for 90% of the purchase price with an annual interest rate of 2.33% due in 24 months from closing, with an option to extend the VTB for an additional year at an interest rate of 4.0%.
In addition, today CAPREIT has sold its one-third managing interest in King’s Club located at 1100 King Street West in downtown Toronto for approximately $90.9 million to Woodbourne, a Canadian developer, operator and investor in residential rental properties, including apartments, seniors housing and student housing. CAPREIT will provide a VTB to the purchaser to finance 75% of the purchase price at an annual interest rate of 3.0% due in 36 months from closing.
“We continue to review and assess our entire property portfolio, identifying and acting on assets where we believe we have maximized value and applying the proceeds from such property sales toward more accretive growth opportunities for our Unitholders,” commented Mark Kenney, President and CEO.
CAPREIT is Canada’s largest publicly-traded provider of quality rental housing. CAPREIT currently owns or has interests in approximately 70,000 residential apartment suites, townhomes and manufactured housing community sites well-located across Canada, in the Netherlands and Ireland with approximately $18 billion of assets under management globally. For more information about CAPREIT, its business and its investment highlights, please visit our website at www.caprent.com or 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.
|For more information, please contact:|
Mr. Michael Stein
Mr. Mark Kenney
President & CEO
Mr. Scott Cryer
Chief Financial Officer