/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO, Dec. 6, 2019 /CNW/ – (TSX:CAR.UN) â Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN) (“CAPREIT” or the “REIT”) announced today that it has closed its previously announced issue and sale of 9,119,500 units for $53.60 per unit for aggregate gross proceeds of $488,805,200 (the “Offering”), which includes the exercise in full of the over-allotment option. The Offering was sold through a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis. The Offering represents the largest bought-deal equity offering by a real estate investment trust in Canadian history.
CAPREIT intends to use the net proceeds of the Offering:
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to finance the REIT’s acquisition of approximately $161 million of unencumbered multi-residential properties (the “Pending Acquisitions“); |
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to partially repay its acquisition and operating facility in the amount of approximately $168 million, which was utilized by CAPREIT to fund $129 million of recently closed unencumbered acquisitions and acquire $39 million of Irish Residential REIT shares; |
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to further repay its acquisition and operating facility in the amount of approximately $72 million; |
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to finance the $6 million acquisition of the freehold interest of 86 units in a property in Toronto, Ontario that is currently leased by CAPREIT (the “Pending Lease Buyout“); and |
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the remainder to finance future acquisitions in CAPREIT’s acquisition pipeline, to fund intensification opportunities within CAPREIT’s existing portfolio, for revenue-enhancing capital expenditures, and for general trust purposes. |
ABOUT CAPREIT
CAPREIT is a growth-oriented investment trust managing 64,028 suites and sites across Canada, the Netherlands, and Ireland. As at November 29, 2019, CAPREIT owned interests, directly in Canada, and indirectly in the Netherlands through its investment in European Investment Real Estate Investment Trust, a total of 60,362 residential units comprised of 48,687 residential suites and 72 manufactured home communities comprising 11,675 sites, all located in and near major urban centres. CAPREIT is a 2019 AON-Hewitt Best Employer in Canada. For more information about CAPREIT, its business and its investment highlights, please refer to 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, including that the Pending Acquisitions and the Pending Lease Buyout do not close, 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.
SOURCE Canadian Apartment Properties Real Estate Investment Trust (CAPREIT)
View original content: http://www.newswire.ca/en/releases/archive/December2019/06/c2059.html