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.
A Media Snippet accompanying this announcement is available by
clicking on this link
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.
“These transactions bring our total capital
reallocation activity in 2023 to above $700 million worth of
Canadian properties, and we’re thrilled to close out the calendar
year on this exciting note,” commented Mark Kenney, President and
Chief Executive Officer. “In keeping with our strategic plan and
progress to date, this latest phase of portfolio rejuvenation has
further enhanced the average age, geographic exposure, and quality
of our overall investment portfolio, and we’re looking forward to
maintaining this momentum as we head into the new year.”
“We reached our annual target in 2023 and
disposed of over $400 million in non-core buildings, while
concurrently reinvesting approximately $300 million into
purpose-built rental properties recently constructed in Canada’s
most attractive and fastest-growing regions,” added Julian
Schonfeldt, Chief Investment Officer. “We’re especially pleased
with our latest two premium acquisitions, strategically located in
highly coveted BC communities where we also own other new build
assets, allowing for operational synergies. In particular, we’re
proud to have just purchased a brand-new concrete building, located
beside one of the most important transit hubs in Vancouver, at a
capitalization rate in excess of 4%. Acquiring this prime new
property at a discount to what it would cost to build today,
without incurring the development or lease-up risk, illustrates the
essence of the CAPREIT 2.0 strategy.”
ABOUT CAPREITCAPREIT is
Canada’s largest publicly traded provider of quality rental
housing. As at September 30, 2023, CAPREIT owns approximately
64,500 residential apartment suites, townhomes and manufactured
home community sites well-located across Canada and the
Netherlands, with approximately $16.5 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.sedarplus.ca.
CAUTIONARY STATEMENTS REGARDING
FORWARD-LOOKING STATEMENTSCertain statements contained in
this press release constitute forward-looking statements within the
meaning of applicable Canadian securities laws which reflect
CAPREIT’s current expectations and projections about future
results. Forward-looking statements generally can be identified by
the use of forward-looking terminology such as “outlook”,
“objective”, “may”, “will”, “expect”, “intent”, “estimate”,
“anticipate”, “believe”, “consider”, “should”, “plans”, “predict”,
“estimate”, “forward”, “potential”, “could”, “likely”,
“approximately”, “scheduled”, “forecast”, “variation” or
“continue”, or similar expressions suggesting future outcomes or
events. The forward-looking statements made in this press release
relate only to events or information as of the date on which the
statements are made in this press release. Actual results and
developments are likely to differ, and may differ materially, from
those expressed or implied by the forward-looking statements
contained in this press release. Any number of factors could cause
actual results to differ materially from these forward-looking
statements. Although CAPREIT believes that the expectations
reflected in forward-looking statements are reasonable, it can give
no assurances that the expectations of any forward-looking
statements will prove to be correct. Such forward-looking
statements are based on a number of assumptions that may prove to
be incorrect. Accordingly, readers should not place undue reliance
on forward-looking statements.
Forward looking statements in this press release
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.sedarplus.ca.
Except as specifically required by applicable
Canadian securities law, CAPREIT does not undertake any obligation
to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or otherwise,
after the date on which the statements are made or to reflect the
occurrence of unanticipated events. These forward-looking
statements should not be relied upon as representing CAPREIT’s
views as of any date subsequent to the date of this press
release.
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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