TORONTO, Oct. 01, 2021 (GLOBE NEWSWIRE) – Canadian Apartment Properties Real Estate Investment Trust (âCAPREITâ) (TSX: CAR.UN) today announced that it has completed the acquisition of a portfolio of three apartment buildings located in Quebec City with 260 residential suites. CAPREIT paid $ 72.8 million for the portfolio, funded through the CAPREIT Acquisition and Operating Facility. The residential occupancy rate of the portfolio was 99.6% at closing.
Built between 2012 and 2015, these high quality modern properties are located in a small cluster in Quebec City overlooking the Saint Lawrence River close to Old Quebec and other top tourist and commercial destinations. Comprising 24 one-bedroom, 115 two-bedroom and 121 three-bedroom apartments, the average size of suites across the portfolio is 1,260 square feet. The properties are fully watered and all appliances in the suites are owned by the residents, reducing future capital investments on resident revenue. All suites are also sub-counted where residents pay their own utility costs, including water consumption.
CAPREIT also announced that on September 29e, 2021, it sold 124 Broadway Avenue in downtown Toronto containing 86 suites. CAPREIT acquired the operating lease for the property in 2004 and in December 2019 finalized the early buyout of the operating lease to own 100% of the building. The property is being sold to a well respected developer. CAPREIT capitalizes on the development potential of the property with a sale price of $ 52.0 million. CAPREIT will provide the buyer with a seller’s repossession mortgage (âVTBâ) for 90% of the purchase price with an annual interest rate of 2.33% due within 24 months of closing, with an option of extend the VTB for an additional year at an interest rate of 4.0%.
In addition, CAPREIT today sold its third-party management stake in King’s Club located at 1100 King Street West in downtown Toronto for approximately $ 90.9 million to Woodbourne, a Canadian developer, operator and investor. residential rental buildings, including apartments, senior housing and student housing. CAPREIT will provide a VTB to the buyer to finance 75% of the purchase price at an annual interest rate of 3.0% due within 36 months of closing.
âWe continue to review and assess our entire real estate portfolio, identifying and acting on assets where we believe we have maximized value and applying the proceeds from those property sales to more profitable growth opportunities. for our unitholders, âcommented Mark Kenney, President and CEO.
CAPREIT is the leading provider of quality, publicly traded rental housing in Canada. CAPREIT currently owns or owns interests in approximately 70,000 residential apartments, townhouses, and community-owned prefabricated housing sites well located in Canada, the Netherlands and Ireland with approximately $ 18 billion in assets under management across global. For more information on CAPREIT, its business and investment highlights, please visit our website at www.caprent.com or www.capreit.net and our public disclosure which can be viewed under our profile at www .sedar.com.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
All statements in this press release that do not relate to historical facts constitute forward-looking statements. These statements represent the intentions, plans, expectations and beliefs of CAPREIT and are subject to certain risks and uncertainties that could cause actual results to differ materially from these forward-looking statements. These risks and uncertainties are further described in regulatory documents which may be obtained on SEDAR at www.sedar.com.
|For more information please contact:|
Mr. Michael Stein
Mr. Mark Kenney
President and CEO
Mr. Scott Cryer