TORONTO, March 31, 2021 /CNW/ - Canadian Apartment
Properties Real Estate Investment Trust (TSX: CAR.UN) ("CAPREIT")
announced today that IRES Fund Management Limited (the
"Investment Manager"), a wholly-owned subsidiary of
CAPREIT, today provided twelve (12) months' notice of termination
of its management agreement (the "Management Agreement") with Irish
Residential Properties REIT plc ("IRES REIT"), which will
become effective March 31, 2022.
Pursuant to the Management Agreement, the Investment Manager
provides asset and property management services to IRES REIT.
CAPREIT Limited Partnership ("CAPLP"), a wholly owned
subsidiary of CAPREIT, also provides services to the Investment
Manager and IRES REIT through a related services agreement (the
"Services Agreement").
The Management Agreement had an initial term of 5 years, which
expired on 1 November 2020, and the
Management Agreement then rolled over for a further 5-year term
unless duly terminated by either party at an earlier date. As
previously disclosed by IRES REIT, the Investment Manager has the
right to terminate the Management Agreement on twelve (12) months'
notice, and IRES REIT has the right to terminate the Management
Agreement in the event that it determines that it is in IRES REIT's
best interests to internalize its management, in which event it may
purchase the Investment Manager on a liability free (other than
liabilities in the ordinary course of business) / cash free basis
for €1 ("Internalisation Termination").
The Investment Manager has issued its 12-month notice of
termination under the Management Agreement. The Services Agreement
will terminate automatically upon termination of the Management
Agreement.
The Investment Manager and CAPLP, in accordance with the terms
of the Management Agreement and the Services Agreement,
respectively, will assist in the orderly transition of management
services to IRES REIT or another investment manager designated by
IRES REIT. Notwithstanding the service of notice of termination of
the Management Agreement by the Investment Manager, IRES REIT
retains its right to serve its own notice of termination of the
Management Agreement pursuant to an Internalisation
Termination and to purchase the Investment Manager for
€1. Both the Investment Manager and CAPREIT continue to work
constructively and cooperatively with IRES REIT to enable IRES REIT
to assess whether it is in its best interest to internalize
management which may still become effective prior to the expiry of
the 12-month termination notice period, or replace the Investment
Manager with a third party.
Through its Irish subsidiary, CAPREIT continues to hold 18.8% in
the share capital of IRES REIT.
ABOUT CAPREIT
CAPREIT is Canada's largest
publicly traded provider of quality rental housing. CAPREIT
currently owns or has interests in, and manages, approximately
67,600 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,
CAPREIT's investment intentions regarding its beneficial interest
in IRES REIT share capital, the orderly transition of management
services to IRES REIT or another investment manager and the
potential acceleration of the twelve-month notice period, that
could result in actual results differing materially from these
forward-looking statements. These risks and uncertainties are more
fully described in regulatory filings, including CAPREIT's Annual
Information Form, which can be obtained on SEDAR at www.sedar.com,
under CAPREIT's profile, as well as under Risks and Uncertainties
section of the MD&A released on February
24, 2021. The information in this press release is based on
information available to management as of March 31, 2021. Subject to applicable law,
CAPREIT does not undertake any obligation to publicly update or
revise any forward-looking information.
SOURCE Canadian Apartment Properties Real Estate Investment
Trust (CAPREIT)