CAPREIT Announces $216MM in Strategic Transactions

TORONTO, March 28, 2024 (GLOBE NEWSWIRE) -- Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it has closed on four non-core Canadian dispositions for combined consideration of $83.5 million, and has entered into an agreement to dispose of an additional parcel of unused land for $2.0 million. CAPREIT has also completed the acquisition of two strategically aligned, newly constructed purpose-built rental properties in Canada for $130.0 million. All amounts disclosed herein exclude transaction costs.

A Media Snippet accompanying this announcement is available by clicking on this link.

This week, CAPREIT closed on the sale of two rental properties located in Langley, British Columbia, to New Vista Society, a local non-profit organization that provides affordable housing to seniors and families. New Vista Society is receiving funding from British Columbia’s Rental Protection Fund (the “BC RPF”). The buildings were both constructed in 1978 and contain 108 residential suites in total. Combined gross proceeds of $35.0 million were used in part to repay $6.5 million in aggregate mortgage principal outstanding.

In addition, earlier in March, CAPREIT completed the disposition of a non-core, 240-suite property built in 1962 in Québec City, Québec, for $36.3 million in gross consideration, with the buyer having assumed the $21.4 million in mortgage principal outstanding. In January, CAPREIT also sold 32 residential suites built in 1969 in Victoria, British Columbia, for $12.3 million, with proceeds used in part to repay the outstanding $2.9 million mortgage.

CAPREIT also announced that it has entered into an agreement to dispose of a 0.3 acre parcel of unused land in Halifax to a neighbouring developer for $2.0 million. CAPREIT has secured a Right of First Offer on the neighbouring site, once the apartment is constructed. The buyer of the land has waived conditions, and closing is anticipated in the second quarter of 2024.

CAPREIT also announced that this month, it acquired two stabilized, concrete, rental apartment properties, one 16-storey and the other 17-storey, primely located in a sought-after community in London, Ontario. The high-quality buildings were constructed in 2019 and 2021, and contain an aggregate 291 spacious residential suites with a large average size of 1,160 square feet. The on-strategy, purpose-built rental apartments were acquired for $130.0 million, representing a significant discount to what it would cost to build today. CAPREIT additionally assumed the two existing below-market mortgages, which have a combined $80.9 million in principal outstanding, a weighted average term to maturity of 2 years, and carry an attractive 2.3% blended interest rate. The residual $49.1 million purchase price was funded by cash sourced from previously announced dispositions.