CAPREIT Extracts Development Value From Land Disposition in Montréal
07 March 2023 - 09:00AM
Canadian Apartment Properties Real Estate Investment Trust
(“CAPREIT”) (TSX:CAR.UN) announced today that it has completed the
disposition of a parking lot site located in Montréal, Québec, for
gross consideration of $17.25 million (excluding disposition
costs). The under-utilized land is located adjacent to an existing
multi-residential building owned by CAPREIT. The site plan was
approved by local planning authorities, the land was severed, and
building permits were issued following CAPREIT’s undertaking of the
end-to-end entitlement process. This provided for approximately
280,000 square feet of gross floor area, representing a strong
sales price of $62 per buildable square foot. The purchase price
was funded with cash, which CAPREIT plans to accretively redeploy
into repayment of debt and, ultimately, the acquisition of
on-strategy, new build assets located in attractive markets.
A Media Snippet accompanying this announcement is available by
clicking on the image or link below:
“We are only just beginning to tap into the
potential provided by our new development strategy, which will be
rewarding for both CAPREIT and the communities that we invest in,”
commented Mark Kenney, President and Chief Executive Officer. “We
are selling to an experienced local developer to do what they do
best, while we redirect the proceeds toward CAPREIT’s core
competencies. We expect this anticipated new development to enhance
the appeal and long-term prospects of the neighbourhood, including
the 1,435 residential units which CAPREIT currently owns across 9
properties in close proximity, while also contributing to the
supply of new homes in Canada.”
“This transaction effectively monetizes the
majority of the prospective development profit upfront, which keeps
the balance sheet flexible and focused on more immediately
accretive, strategically-aligned opportunities,” added Julian
Schonfeldt, Chief Investment Officer. “We additionally avoid the
development and lease-up risks that would accompany our multi-year
development of the land, while realizing a comparable cash return
today, demonstrating the strong value being generated from this key
strategic program.”
ABOUT CAPREITCAPREIT is
Canada’s largest publicly traded provider of quality rental
housing. As at December 31, 2022, CAPREIT owns or has interests in
approximately 67,000 residential apartment suites, townhomes and
manufactured home community sites well-located across Canada and
the Netherlands, with approximately $17 billion of investment
properties in Canada and Europe. For more information about
CAPREIT, its business and its investment highlights, please visit
our website at www.capreit.ca and our public disclosure which can
be found under our profile at www.sedar.com.
CAUTIONARY
STATEMENTS REGARDING FORWARD-LOOKING STATEMENTSAll
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 that could result in
actual results differing materially from these forward-looking
statements. These risks and uncertainties are more fully described
in regulatory filings that can be obtained on SEDAR at
www.sedar.com.
For more information, please
contact:
CAPREIT |
CAPREIT |
CAPREIT |
Mr. Mark Kenney |
Mr. Stephen Co |
Mr. Julian Schonfeldt |
President & Chief Executive Officer |
Chief Financial Officer |
Chief Investment Officer |
(416) 861-9404 |
(416) 306-3009 |
(647) 535-2544 |
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