TORONTO, May 02, 2022 (GLOBE NEWSWIRE) -- Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it had completed the purchase of a 172-site Manufactured Housing Community (“MHC”) located in Red Deer, Alberta. The community, developed in 2000, was acquired for $16.5 million, funded with existing liquidity. Occupancy was 100% at closing.
“With this acquisition, we now own and operate 77 manufactured housing communities, well-located in key markets across Canada totaling 12,375 MHC sites,” commented Mark Kenney, President and CEO. “Looking ahead, we will continue to further diversify our residential portfolio, including a strong focus on the MHC sector due to its contribution to housing affordability, the strength and stability of its revenue streams, and the attractive return profile.”
“Over the last ten years we have invested close to $100 million in repositioning our MHC assets, primarily in improvements to common areas, amenities and improved infrastructure,” Mr. Kenney continued. “These investments ensure we attract and retain families looking for quality living and, importantly, increase our commitment to providing an affordable alternative to the high cost of home ownership across Canada.”
CAPREIT also announced today that it has sold an 82-suite apartment property located at 88 Isabella Street in downtown Toronto, which was built in 1968. The buyer is acquiring the building as part of a land assembly transaction. CAPREIT will be paid $56.0 million for the property, well above the current IFRS fair value for the property. CAPREIT had exercised an early buy-out of the property’s operating lease in 2020, which allowed the disposition to be effected.
“These two transactions are indicative of the value we are generating for Unitholders through our active asset management,” Mr. Kenney stated. “We are selling a property at a capitalization rate that is below 2%, and deploying funds in a property at a capitalization rate that is above 5%. Looking forward, we will continue to consider opportunities where we can strategically access attractive equity capital for redeployment into more accretive growth opportunities.”
ABOUT CAPREIT
CAPREIT is Canada's largest publicly-traded provider of quality rental housing. CAPREIT currently owns or has interests in approximately 67,000 residential apartment suites, townhomes and manufactured housing community sites well-located across Canada and the Netherlands with approximately $17 billion of assets under management globally. 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 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:
| CAPREIT Mr. Michael Stein Chairman (416) 861-5788 | CAPREIT Mr. Mark Kenney President & CEO (416) 861-9404 | CAPREIT Mr. Stephen Co Interim Chief Financial Officer (416) 861-5771 |
