CAPREIT EXPANDS PRESENCE IN WESTERN ONTARIO
Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it has waived conditions and agreed to purchase a portfolio of two properties in London, Ontario and Sarnia, Ontario aggregating 301 residential suites. CAPREIT has agreed to pay $50.0 million for the two properties, funded by CAPREIT’s cash and cash equivalents, and will subsequently be partially financed by new CMHC-insured mortgages. Occupancy currently stands at 98.3% with only five vacant suites in the portfolio. Closing is expected on or before September 21, 2020.
The London property is a six-storey apartment building located in Southwest London containing a mix of 107 bachelor, one- and two-bedroom suites. Located within a short walk of the Thames River, the property is close to a shopping mall, public gardens and other amenities, as well as local transport and access to major thoroughfares.
The Sarnia property consists of a ten-storey apartment building, a three-storey apartment building and 60 townhomes totaling 194 residential suites, as well as one commercial unit. The property is located in a pleasant low-density residential neighbourhood close to schools, parks, public transit and highways. Amenities include park-like landscaped grounds and a seasonal swimming pool.
“These acquisitions expand our presence in the strong south-western Ontario markets of London and Sarnia,” commented Mark Kenney, President and CEO. “We look to achieve solid returns on investment as operating synergies and economies of scale are realized through the increase in the size of this region’s portfolio.”
CAPREIT is one of Canada’s largest real estate investment trusts. CAPREIT owns approximately 56,700 suites and sites, including townhomes and manufactured housing sites, in Canada and indirectly through its investment in ERES, approximately 5,600 suites in the Netherlands. CAPREIT manages approximately 60,800 of its owned suites in Canada and Netherlands, and additionally, approximately 3,800 suites in Ireland. For more information about CAPREIT, its business and its investment highlights, please refer to 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
Story by: CAPREIT