CAPREIT Extracts Development Value From Land Disposition in Montréal
TORONTO, March 06, 2023 (GLOBE NEWSWIRE) — Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it has completed the disposition of a parking lot site located in Montréal, Québec, for gross consideration of $17.25 million (excluding disposition costs). The under-utilized land is located adjacent to an existing multi-residential building owned by CAPREIT. The site plan was approved by local planning authorities, the land was severed, and building permits were issued following CAPREIT’s undertaking of the end-to-end entitlement process. This provided for approximately 280,000 square feet of gross floor area, representing a strong sales price of $62 per buildable square foot. The purchase price was funded with cash, which CAPREIT plans to accretively redeploy into repayment of debt and, ultimately, the acquisition of on-strategy, new build assets located in attractive markets.
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“We are only just beginning to tap into the potential provided by our new development strategy, which will be rewarding for both CAPREIT and the communities that we invest in,” commented Mark Kenney, President and Chief Executive Officer. “We are selling to an experienced local developer to do what they do best, while we redirect the proceeds toward CAPREIT’s core competencies. We expect this anticipated new development to enhance the appeal and long-term prospects of the neighbourhood, including the 1,435 residential units which CAPREIT currently owns across 9 properties in close proximity, while also contributing to the supply of new homes in Canada.”
“This transaction effectively monetizes the majority of the prospective development profit upfront, which keeps the balance sheet flexible and focused on more immediately accretive, strategically-aligned opportunities,” added Julian Schonfeldt, Chief Investment Officer. “We additionally avoid the development and lease-up risks that would accompany our multi-year development of the land, while realizing a comparable cash return today, demonstrating the strong value being generated from this key strategic program.”
CAPREIT is Canada’s largest publicly traded provider of quality rental housing. As at December 31, 2022, CAPREIT owns or has interests in approximately 67,000 residential apartment suites, townhomes and manufactured home community sites well-located across Canada and the Netherlands, with approximately $17 billion of investment properties in Canada and Europe. For more information about CAPREIT, its business and its investment highlights, please visit our website at www.capreit.ca 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. Mark Kenney||Mr. Stephen Co||Mr. Julian Schonfeldt|
|President & Chief Executive Officer||Chief Financial Officer||Chief Investment Officer|
|(416) 861-9404||(416) 306-3009||(647) 535-2544|