/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
LITTLE ROCK, Ark. and
TORONTO, Feb. 2, 2021 /CNW/ - BSR Real Estate Investment
Trust ("BSR" or the "REIT") (TSX: HOM.U) (TSX: HOM.UN)
announced today that it has entered into an agreement to sell to a
syndicate of underwriters led by BMO Capital Markets, CIBC Capital
Markets, and RBC Capital Markets (the "Underwriters"), on a bought
deal basis, 5,480,000 trust units of the REIT ("Units") at a price
of US$10.95 per Unit ("Offering
Price") for gross proceeds to the REIT of approximately
US$60 million (the "Public
Offering").
In addition, the REIT has also granted the Underwriters an
option (the "Over-Allotment Option"), exercisable at any time, in
whole or in part, for a period of 30 days following the closing of
the Public Offering to purchase up to an additional 822,000 Units
at the Offering Price, which, if exercised in full, would increase
the gross proceeds of the Public Offering to approximately
US$69 million.
BSR intends to use the net proceeds from the Public Offering to
repay a portion of amounts outstanding on its credit facility, to
fund future acquisitions and for general trust purposes. Upon
completion of the Public Offering (and assuming the Over-Allotment
Option is exercised in full), BSR expects to have access to
approximately US$155 million of
available liquidity through unrestricted cash and borrowing
capacity available under its credit facility.
John Bailey, BSR's Chief
Executive Officer, commented that "Our recent acquisition and
non-core asset disposition activities clearly demonstrates BSR's
commitment and ability to execute on our portfolio enhancement and
capital recycling program. The REIT has embarked upon this asset
rotation growth strategy since the IPO, resulting in a reduction of
the portfolio average age from 29 years old to 16 years old. BSR's
14 acquisitions post IPO added 4,191 apartment units with a
weighted average year built of 2013 (seven years old) versus 32
dispositions totaling 6,399 apartment units with a weighted average
year built of 1988 (32 years old). We continue to see a pipeline of
acquisition opportunities across our core growth markets. The
proceeds from the equity offering strengthen our liquidity position
and enable us to pursue these opportunities."
The Units forming part of the Public Offering will be offered in
Canada pursuant to a base shelf
prospectus dated November 8, 2019.
The terms of the Public Offering will be described in a prospectus
supplement to the base shelf prospectus to be filed with securities
regulators in all provinces and territories of Canada. Closing of the Public Offering is
expected to take place on or about February 9, 2021 and is subject to the REIT
receiving all necessary regulatory approvals, including approval of
the Toronto Stock Exchange.
The Units have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended, (the "1933 Act")
and may not be offered, sold or delivered, directly or indirectly,
in the United States, or to, or
for the account or benefit of, "U.S. persons" (as defined in
Regulation S under the 1933 Act), except pursuant to an exemption
from the registration requirements of the 1933 Act. This press
release does not constitute an offer to sell or a solicitation of
an offer to buy any Units in the United
States or to, or for the account or benefit of, U.S.
persons.
ABOUT BSR REAL ESTATE INVESTMENT TRUST
BSR Real Estate Investment Trust is an internally managed,
unincorporated, open-ended real estate investment trust established
pursuant to a declaration of trust under the laws of the Province
of Ontario. The REIT owns a
portfolio of multifamily garden-style residential properties
located in attractive primary and secondary markets in the Sunbelt
region of the United States.
Additional information about the REIT is available at
www.bsrreit.com or www.sedar.com.
Forward-Looking Information
This news release contains forward-looking information within
the meaning of applicable securities legislation, which reflects
the REIT's current expectations regarding future events, including
statements about the Public Offering, the anticipated closing and
proposed use of proceeds thereof, available liquidity and
acquisition capacity. In some cases forward-looking information can
be identified by such terms as "will", "would" and "expected".
Forward-looking information is based on a number of assumptions and
is subject to a number of risks and uncertainties, many of which
are beyond the REIT's control that could cause actual results and
events to differ materially from those that are disclosed in or
implied by such forward-looking information. The REIT's estimates,
beliefs and assumptions, which may prove to be incorrect, including
those relating to the REIT's ability to complete the Public
Offering and finance and complete future acquisitions, as well as
that COVID-19 will not have a material impact on the REIT's
operations, business and financial results. The risks and
uncertainties that may impact such forward-looking information
include, but are not limited to, the impact of COVID-19 on the
REIT's operations, business and financial results and the factors
discussed under "Risks and Uncertainties" in the REIT's
Management's Discussion and Analysis for the three and nine months
ended September 30, 2020 and under
"Risk Factors" in the REIT's annual information form dated
March 10, 2020, both of which are
available on SEDAR (www.sedar.com). The REIT does not undertake any
obligation to update such forward-looking information, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable law. This forward-looking
information speaks only as of the date of this news
release.
SOURCE BSR Real Estate Investment Trust