CAPREIT Announces $101MM in New Strategic Transactions

TORONTO, Dec. 20, 2023 (GLOBE NEWSWIRE) -- Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that, since its last transaction press release on September 5, 2023, it has completed two strategically aligned acquisitions of newly constructed Canadian rental properties for an aggregate purchase price of $90.5 million. CAPREIT also announced that it has disposed of two non-core buildings in Canada for combined consideration of $10.3 million, in addition to closing on the previously announced $53.9 million strategic sale in Calgary, Alberta. All amounts disclosed herein exclude transaction costs.

This month, CAPREIT acquired a newly constructed 12-storey, concrete purpose-built rental apartment containing 114 high-quality residential suites and over 5,000 square feet of commercial retail at grade. The building is situated in a strategic location in Vancouver, British Columbia, just steps from the Commercial-Broadway SkyTrain, which is serviced by both the Expo and Millennium lines. Construction of the building was completed this year, and it was purchased, following lease-up, for $68.0 million. After adjusting for the retail component, the purchase price represents approximately $550,000 per suite, an attractive purchase price for a prime-located, newly built, concrete-construction apartment in Vancouver. The purchase was funded by cash from previously announced dispositions; however, an estimated $50.0 million in mortgage financing is expected to be arranged in the near-term using the CMHC MLI Select program.

In addition, in November, CAPREIT completed the on-strategy acquisition of a newly built 48-suite residential property with ocean views in Esquimalt, a municipality within the metropolitan Victoria area of southwestern British Columbia. The building was constructed in 2022 and was purchased for $22.5 million using cash from net disposition proceeds, with an estimated $13.0 million in mortgage financing expected to be secured in the short-term.

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CAPREIT also closed on three non-core dispositions in November, including the previously announced $53.9 million sale of an unencumbered 263-suite property built in 1978 in Calgary, Alberta. CAPREIT further disposed of another unencumbered property containing 21 residential suites built in 1978 in Charlottetown, Prince Edward Island, for $1.7 million. An additional 78-suite non-strategic property built in 1966 in Québec City, Québec, was sold for $8.6 million, with proceeds used in part to repay $2.5 million in mortgage principal outstanding.