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WINNIPEG, MB, Oct. 31, 2022 /CNW/ – Marwest Apartment Real Estate Investment Trust (“Marwest Apartment REIT” or the “REIT”) (TSXV: MAR.UN) announced today that it has completed the purchase of a newly constructed 153 unit apartment building in Winnipeg, Manitoba called Prairie View Pointe (“The Property”) for $42,000,000.
The fully leased Property was completed in 2021 and consists of 47 one-bedroom, 87 two-bedroom, and 19 three-bedroom apartments. The units range between 532 to 1,043 square feet in size and include modern designs with open-concept floorplans, quartz countertops, stainless steel appliances and private balconies. Resident amenities include an on-site fitness facility, rooftop patio, movie room, games room, Starbucks kiosk and pet wash station. The Property includes 83 underground and 149 surface parking stalls. The property is located near shopping, transit, parks, recreation facilities and schools.
“This acquisition fits with the new generation product that the REIT currently owns. We are pleased to acquire the property along with the existing mortgage at a tremendous rate compared to what is available currently in the market. Prairie View Pointe is located in a prime development area in North Winnipeg, and offers many amenities to its residents,” commented William Martens, CEO of Marwest Apartment REIT.
The acquisition was funded through a combination of the following:
- the assumption of $32.96 million CMHC insured first mortgage secured by the Property, with an interest rate of 2.99% and with just under 5 years remaining on its term;
- cash payment of approximately $9.08 million obtained from the following sources:
- the net proceeds of a $16.31 million CMHC insured first mortgage secured by 72 townhome units at the Brio Brownstones site, with an interest rate of 3.92% and with an approximate 10 year term, and which replaced a non-CMHC insured mortgage in the principal amount of $12.50 million that was set to expire in October 2023;
- the net proceeds of a new $4.00 million second mortgage secured by the Kenwood Apartments, with an interest rate of 5.59% with a 5 year term; and
- cash on hand of approximately $2.50 million.
On closing of the acquisition and taking into account the new mortgages placed, the REIT has extended its weighted average term-to-maturity of its debt from 71.83 months to 81.27 months.
There is no change to the distribution policy of Marwest Apartment REIT, which currently provides for distributions at $0.015 per unit on an annualized basis, paid monthly.
About Marwest Apartment REIT
The REIT is an unincorporated open-ended trust governed by the laws of the Province of Manitoba. The REIT was formed to provide Unitholders with the opportunity to invest in the Canadian multi-family rental sector through the ownership of high-quality income-producing properties, with an initial focus on stable markets throughout Western Canada.
Marwest REIT’s management team and Trustees have over 100 years of combined experience in multi-residential real estate. They bring a strong combination of development, construction, management, and financing experience, along with significant governance expertise. The REIT has an external asset and property management agreement through the Marwest Group of Companies. The Marwest Group of Companies is a fully integrated real estate group that specializes in development, construction, and property management. Now in its third generation of operations, the Marwest Group has developed over 12,000 units, and currently manages over 2,500 units, providing the REIT with an array of top calibre tools, industry know-how and strong relationships. Marwest Apartment REIT will continue to benefit from the expertise and strong infrastructure that is currently in place through the Marwest Group.
Forward-looking Statements
The information in this news release includes certain information and statements about the REIT’s current monthly cash distribution policy that constitute forwardâlooking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forwardâlooking statements. A number of factors could cause actual results to differ materially from these forwardâlooking statements. The declaration and/or payment of future cash distributions will be dependent upon a number of factors, including but not limited to the financial performance, financial condition and financial requirements of the REIT. Although management of the REIT believes that the expectations reflected in forwardâ looking statements are reasonable, it can give no assurances that the expectations of any forwardâ looking statements will prove to be correct. Except as required by law, the REIT disclaims any intention and assumes no obligation to update or revise any forwardâlooking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forwardâlooking statements or otherwise.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
The Trust Units are not registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold within the United States or to or for the account or benefit of U.S. persons, except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities of the REIT in the United States or in any other jurisdiction.
SOURCE Marwest Apartment Real Estate Investment Trust
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