TORONTO, Aug. 31, 2021 (GLOBE NEWSWIRE) — Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it has completed the purchase of the remaining 50% interest in a portfolio 787 apartment suites and townhouse units located in the Greater Toronto Area. CAPREIT acquired its initial 50% interest on July 31, 2008.
The portfolio consists of a 139-suite apartment building and a 93-unit luxury townhouse complex in North York, a 111-unit townhouse development in Etobicoke, a complex of four high-rise apartment buildings in East Toronto aggregating 370 suites, and a 74-suite luxury apartment property on the corner of Chaplin Crescent and Eglinton Avenue West in midtown Toronto. The 583 apartment suites include bachelor, one, two and three-bedroom units, with the 204 townhome portfolio including two, three and four bedroom suites. Occupancy in the portfolio was approximately 98.5% at closing. CAPREIT has been the property manager for the portfolio since acquiring its initial 50% interest.
CAPREIT paid $159.0 million for the remaining 50% interest in the portfolio, satisfied by the assumption of 50% of the existing mortgages which equates to $37.2 million at an average interest rate of approximately 3.16% and an average term to maturity of 7.8 years, with the balance in cash.
Pursuant to its stated strategy of acquiring value-add properties and investing in them to increase their value and enhance their long-term income producing potential, CAPREIT has invested approximately $48.2 million in the portfolio since the acquisition of its original 50% interest. Upgrades include new heating boilers, water fixture retrofits, in-suite and common area LED lighting, and other energy efficient investments. In addition to significant cost savings and enhanced operating efficiency at the properties, to date the investments have resulted in an approximate 11.9% reduction in energy consumption and a 12.0% reduction in GHG emissions since 2010.
“We are pleased to be acquiring 100% ownership of these accretive properties. These are strong value acquisitions that meet our additional goal of simplifying the balance sheet for improved growth. The portfolio has significantly increased in value since our original investment, in part the result of our proactive and successful property management programs, and capital investments that have increased operating efficiency and reduced costs,” commented Mark Kenney, President and CEO. “We are also pleased that our investments and our focus on ESG programs have contributed to meeting our goal of reducing our environmental footprint.”
CAPREIT is Canada’s largest publicly-traded provider of quality rental housing. CAPREIT currently owns or has interests in approximately 69,600 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 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:
Mr. Michael Stein
Mr. Mark Kenney
President & CEO
Mr. Scott Cryer
Chief Financial Officer