â Convertible development loan coupon also adjusted â
OTTAWA, ON, March 23, 2023 /CNW/ – Minto Apartment Real Estate Investment Trust (the “REIT”) (TSX: MI.UN) today announced that Minto Properties Inc. (“MPI”) has agreed to extend the outside date for the REIT’s option to purchase Fifth + Bank to December 31, 2023 (previously June 30, 2023) and to extend the maturity date of the convertible development loan related to Fifth + Bank (the “CDL”) until January 31, 2024 (previously July 31, 2023).
In addition, MPI has agreed to amend the coupon payable under the CDL commencing July 1, 2023 to be equal to the all-in interest rate the REIT pays from time to time for its revolving credit facility (the “Credit Facility”), subject to a maximum interest rate payable of 7% per annum and a minimum interest rate payable of 5% per annum. Currently, the CDL coupon is 6% per annum and the REIT’s cost on its Credit Facility is approximately 6.68% per annum.
“MPI continues to work collaboratively with the REIT on these amendments,” said Jonathan Li, the REIT’s incoming Chief Executive Officer. “The extension of the purchase option provides the REIT with further optionality to purchase an attractive asset and the amendment to the CDL coupon means that the CDL coupon will be equal to the current cost of capital on the REIT’s Credit Facility.”
Fifth + Bank is a newly constructed, 163-suite mixed-use multi-residential rental and retail property located at 99 Fifth Avenue in the Glebe neighbourhood of Ottawa, Ontario. The REIT has the exclusive option to purchase the property at 95% of its then-appraised fair market value as determined by independent and qualified third-party appraisers.
Minto Apartment Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario to own income-producing multi-residential properties located in urban markets in Canada. The REIT owns a portfolio of high-quality income-producing multi-residential rental properties and developments located in Toronto, Montreal, Ottawa, Vancouver, Victoria, Calgary and Edmonton. For more information on Minto Apartment REIT, please visit the REIT’s website at: https://www.mintoapartments.com/.
This news release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the REIT’s current expectations regarding future events and in some cases can be identified by such terms as “will” and “expects”. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. In this news release, forward-looking information includes the fact that there is no certainty that the option to purchase the Fifth + Bank property will be exercised. Other such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in the REIT’s Annual Information Form dated March 8, 2023, which is available on SEDAR (www.sedar.com). The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.
SOURCE Minto Apartment Real Estate Income Trust
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