CAPREIT Divests $103MM in Non-Core Properties & Reinvests $74MM in New Build Properties
June 08 2023 - 4:33PM
Canadian Apartment Properties Real Estate Investment Trust
(“CAPREIT”) (TSX:CAR.UN) announced today that it has closed on
three dispositions of non-core properties built between 1971 and
1999 for combined consideration of $103.3 million (excluding
disposition costs). CAPREIT also announced that it has reinvested a
total of $74.1 million (excluding transaction costs) in two new
construction rental properties.
CAPREIT completed the disposition of one
unencumbered property containing 393 residential suites and 2
commercial units in the Saint-Laurent neighbourhood of Montréal,
Québec, for consideration of $68.9 million (excluding disposition
costs). It further disposed of a 60-suite residential portfolio in
Charlottetown, Prince Edward Island, for gross proceeds of $9.4
million (excluding disposition costs), which were in part used to
repay the principal outstanding on the mortgage of $3.3 million.
CAPREIT additionally closed on the disposition of 162 residential
suites located in Longueuil, a suburb of Montréal, Québec, for
gross consideration of $25.0 million, with the buyer having assumed
the remaining $6.4 million mortgage outstanding.
A Media Snippet accompanying this announcement
is available by clicking on the image or link below:
CAPREIT concurrently announced that it has
completed the acquisition of a newly constructed, amenity-rich
property located in the growing city of Langley, British Columbia,
for a purchase price of $53.7 million (excluding transaction
costs). The 93-suite residential building was constructed in 2022
and is located next to a park and a major transit station that
provides direct access to Vancouver’s city centre. It is also
nearby several of CAPREIT’s other new build properties in the area,
providing operational synergies. Tenants enjoy use of their modern,
high-quality apartments, which have a large weighted average suite
size of over 1,000 square feet. The energy-efficient building is
topped with 250 solar panels and contains suites that are each
individually metered for all utilities, leading to lower
consumption and costs. The property was acquired absent of any
mortgage financing; however, it is expected to be mortgaged for
anticipated principal of up to $33 million.
CAPREIT further announced that it has completed
the acquisition of 52 residential suites and one commercial unit
located in Dartmouth, Nova Scotia, for $20.4 million (excluding
transaction costs). The strategically aligned property is also
newly built with a large weighted average suite size of over 1,100
square feet. Located in an affordable, urban neighbourhood within
the expanding Halifax municipality, it has a strong growth profile
and will be efficiently managed by CAPREIT’s local regional office.
The purchase was funded using cash from net disposition proceeds;
however, an estimated $13 million in mortgage financing is expected
to be arranged in the near-term.
“We are very pleased with the continued
execution on our portfolio high-grading, and the positive impact
that it has on helping with the widespread housing supply issues
we’re seeing across the country,” commented Mark Kenney, President
and Chief Executive Officer. “With this repositioning, we
reallocated capital into fundamentally strong Canadian markets
which are experiencing high population growth and increasing demand
for residential accommodation. Our focus on acquiring new
purpose-built rental properties in these attractive, expanding
regions supports the supply of new construction rental housing
where it is needed most.”
“These latest transactions bring total gross
disposition proceeds to $281 million this year to date, of which
we’ve reinvested $158 million in on-strategy properties before
financing, along with over $100 million in our accretive NCIB
program, all together generating strong value for our Unitholders
so far in 2023,” added Julian Schonfeldt, Chief Investment Officer.
“We are excited to continue acting on the expansive pipeline of
capital recycling opportunities available to us, while
simultaneously furthering our contribution to curbing the housing
crisis in Canada.”
ABOUT CAPREITCAPREIT is
Canada’s largest publicly traded provider of quality rental
housing. As at March 31, 2023, CAPREIT owns approximately 66,000
residential apartment suites, townhomes and manufactured home
community sites well-located across Canada and the Netherlands,
with approximately $17 billion of investment properties in Canada
and Europe. 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 STATEMENTSAll
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 |
CAPREIT |
CAPREIT |
Mr. Mark Kenney |
Mr. Stephen Co |
Mr. Julian Schonfeldt |
President & Chief Executive Officer |
Chief Financial Officer |
Chief Investment Officer |
(416) 861-9404 |
(416) 306-3009 |
(647) 535-2544 |
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