TORONTO, Aug.31, 2021 (GLOBE NEWSWIRE) – Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX: CAR.UN) today announced that it has completed the purchase of the remaining 50% interest in a portfolio 787 apartments and townhouses located in the Greater Toronto Area. CAPREIT acquired its initial 50% stake on July 31, 2008.
The portfolio consists of a 139-unit apartment building and 93-unit luxury townhouse complex in North York, a 111-unit townhouse complex in Etobicoke, a complex four high-rise apartment buildings in east Toronto with 370 suites and a 74-suite luxury apartment on the corner of Chaplin Crescent and Eglinton Avenue West in downtown Toronto. The 583 apartments include studios, one, two and three bedrooms, while the portfolio of 204 townhouses includes two, three and four bedroom suites. The portfolio occupancy rate was approximately 98.5% at closing. CAPREIT has been the real estate manager of the portfolio since the acquisition of its initial 50% stake.
CAPREIT paid $ 159.0 million for the remaining 50% interest in the portfolio, satisfied by assuming 50% of the existing mortgages, which equates to $ 37.2 million at an interest rate average of approximately 3.16% and an average term to maturity of 7.8 years, with the balance in cash.
In accordance with its stated strategy of acquiring and investing in value-added properties to increase their value and improve their long-term income generation potential, CAPREIT has invested approximately $ 48.2 million in the portfolio. since the acquisition of its initial 50% stake. Upgrades include new heating boilers, water facility renovations, LED lighting in suites and common areas, and other energy-efficient investments. In addition to significant cost savings and increased operational efficiency at properties, to date investments have resulted in approximately 11.9% reduction in energy consumption and 12.0% reduction of GHG emissions since 2010.
“We are delighted to acquire 100% ownership of these accretive properties. These are high value acquisitions that meet our additional objective of simplifying the balance sheet for better growth. The value of the portfolio has increased significantly since our initial investment, in part due to our proactive and successful property management programs and capital investments that have increased operational efficiency and reduced costs, ”commented Mark Kenney, President and chief Executive Officer. “We are also delighted that our investments and focus on ESG programs have helped achieve our goal of reducing our environmental footprint. “
CAPREIT is the leading provider of quality, publicly traded rental housing in Canada. CAPREIT currently owns or owns interests in approximately 69,600 residential apartments, townhouses and community prefabricated housing sites well located in Canada, the Netherlands and Ireland. 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