CAPREIT Increases Size and Scale of Suburban GTA Portfolio
TORONTO, May 05, 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 four apartment properties located in Oshawa, Ontario aggregating 484 residential suites. CAPREIT paid $103.7 million for the four properties, funded from its Acquisition and Operating Facility. Residential occupancy in the portfolio was 98.4% at closing.
The four apartment buildings are located in a small cluster well-positioned in North Oshawa, a growing suburban community east of Toronto. The properties include swimming pools, children’s playgrounds, laundry facilities and parking. All are situated close to a large conservation area, parks, a major shopping mall, and other amenities. They are all easily accessible by numerous transportation links. Included in the suite mix are 294 two-bedroom and 11 three-bedroom apartments, meeting the need for families looking for extra space. Average suite size across the entire portfolio is approximately 800 square feet.
“Our asset allocation strategy includes targeting the purchase of quality mid-tier apartment properties located in suburban markets close to major Canadian cities,” commented Mark Kenney, President and CEO. “These Oshawa properties are an excellent fit, and our proven ability to accretively invest in the properties, combined with our successful property management programs, will generate increased value for our Unitholders over the long term.”
OPERATING LEASE BUYOUT
CAPREIT also announced that on April 15, 2021 it has completed the early buyout of an operating lease for a 65-suite apartment property located at 1004 Lawrence Road in Toronto, Ontario. CAPREIT paid approximately $4.2 million, representing a 19% discount to the purchase price for the buyout set out in the property’s operating lease at the end of the term. CAPREIT continues to evaluate prepaying the buyouts on its remaining two operating leases which have contractual buyout periods commencing between 2024 and 2028.
A Media Snippet accompanying this announcement is available by clicking on the image or link below:
CAPREIT is Canada’s largest publicly-traded provider of quality rental housing. CAPREIT currently owns or has interests in approximately 68,100 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