CAPREIT Significantly Expands Presence in Halifax, Nova Scotia
Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) (TSX:CAR.UN) announced today that it has waived conditions and agreed to acquire, subject to regulatory approvals, a portfolio of eight properties containing fourteen apartment buildings totaling 1,503 rental suites, well-located throughout the downtown core and surrounding metro area of Halifax, Nova Scotia. A table summarizing the properties being acquired is below.
Occupancy for the total portfolio currently stands at 99.9%. CAPREIT will pay approximately $391 million for the portfolio, satisfied by the assumption of approximately $109.1 million in mortgages with a weighted average interest rate of 1.94% and a weighted average term to maturity of 1.25 years, with the balance in cash from its Acquisition and Operating credit facility. Closing is expected by the end of January 2020.
The properties have been well maintained and all are close to key amenities such as the Halifax waterfront, the city’s Central Business District, schools, universities, public transport, shopping, walking trails, entertainment, and other attractions. A number of the properties contain retail components to better serve residents.
“With this purchase, we will significantly increase the size and scale of our Halifax portfolio, capturing strong economies of scale and operating synergies across our asset base in the city,” commented Mark Kenney, President and CEO. “Once completed, our Halifax portfolio will grow to over 3,100 residential suites, transforming CAPREIT into one of the city’s premier providers of quality rental accommodation.”
|Property||Total Suites||Year Built||Parking||Occupancy||Avg. Size (Sq. ft.)|
|1920 Brunswick Street||146||2014||118||100.0%||715|
|1881 Brunswick Street||170||1979||141||100.0%||930|
|1991 Brunswick Street||195||1971||195||100.0%||670|
|2001 Brunswick Street||119||1974||101||100.0%||745|
|2065 & 2073-2077 Brunswick Street||164||1986||114||100.0%||770|
|5885 Cunard Street||190||1971||183||99.5%||750|
|5770 Spring Garden Road||186||1975||180||100.0%||740|
|79‐81 Radcliffe Drive & 80‐95 Chipstone Close||333||1991 – 1995||527||99.7%||995|
CAPREIT is a growth-oriented investment trust managing 64,028 suites and sites across Canada, the Netherlands, and Ireland. It owns interests directly in Canada and indirectly in the Netherlands through its investment in ERES a total of 60,362 residential units, comprising 48,687 residential suites and 72 manufactured home communities comprising 11,675 sites, all located in and near major urban centres. 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.