CAPREIT Expands Presence in Strong London Ontario and Victoria B.C. Markets
TORONTO, June 25, 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 seven apartment buildings aggregating 548 residential suites in London, Ontario (the “London Portfolio”), as well as a portfolio of six apartment buildings aggregating 335 residential suites in and near downtown Victoria, British Columbia (the “Victoria Portfolio”). CAPREIT paid approximately $214.5 million in the aggregate for the thirteen properties, funded by CAPREIT’s Acquisition and Operating Facility and the assumption of approximately $8.4 million in mortgages with a blended interest rate of 1.33%.
The London Portfolio contains a mix of studios, one, two and three-bedroom suites. All the buildings are well-located, close to downtown London, transportation links, shopping, restaurants, universities, schools, and parks, and all have undergone exterior, common area and suite upgrades and renovations over the past five years. Management believes there is a significant opportunity to improve the London Portfolio’s environmental footprint by decreasing utility consumption through water fixture retrofits and the modernization of heating boilers. Additionally, on turnover, suites can be self-metered for hydro.
The Victoria Portfolio also includes a mix of studios, one, two and three-bedroom suites. The suites have large open-concept kitchens, new stainless-steel appliances, upgraded cabinetry and bathrooms, and the buildings have attractive curb appeal. All the buildings are close to transportation links, shopping, restaurants, schools, and parks. The buildings have undergone recent exterior and common area renovations.
“We continue to grow our value-add residential portfolio with these accretive acquisitions. Both portfolios are in strong and stable suburban markets, offering residents quality suites with more space, at affordable rental rates, characteristics that are in high demand today” commented Mark Kenney, President and CEO. “These acquisitions are in-line with our successful asset allocation strategy of acquiring mid-tier properties, where we can add significant value through our proven property management and investment initiatives.”
CAPREIT is Canada’s largest publicly-traded provider of quality rental housing. CAPREIT currently owns or has interests in approximately 69,200 residential apartment suites, townhomes and manufactured housing community sites well-located across Canada, in the Netherlands and Ireland. 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