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Press release from Marketwire

CAPREIT Announces Acquisitions in British Columbia and Ontario, and Sale of Non-Core Property to Further Strengthen Portfolio

Monday, May 03, 2010

CAPREIT Announces Acquisitions in British Columbia and Ontario, and Sale of Non-Core Property to Further Strengthen Portfolio17:57 EDT Monday, May 03, 2010TORONTO, ONTARIO--(Marketwire - May 3, 2010) - Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) announced today that it has completed the acquisition of a centrally-located luxury apartment property comprising 162 suites located on West Georgia Street in Vancouver, British Columbia. The purchase price of approximately $37.5 million, excluding closing and transaction costs, was funded by the assumption of an existing CMHC-insured first mortgage of $22.7 million at 4.59% maturing on April 5, 2017, with the balance from CAPREIT's revolving credit facilities.In addition, CAPREIT has entered into a binding agreement to buy another luxury apartment property comprising 199 suites located on Sherobee Road in Mississauga, Ontario. The property is registered as a condominium and is adjacent to and shares common facilities with an existing CAPREIT property. The purchase price of approximately $31.0 million, excluding closing and transaction costs, is expected to be funded by new CMHC-insured first mortgage financing in the amount of $23.3 million with the balance from CAPREIT's revolving credit facilities. The transaction is expected to close in the second quarter of 2010.Along with the above acquisitions, CAPREIT has also entered into a binding agreement to sell a property comprising 146 suites located in London, Ontario for $7.6 million, excluding closing and transaction costs. The purchaser will assume existing mortgages of $5.7 million. The net cash proceeds from this sale will be used to repay bank indebtedness. The transaction is expected to close in the second quarter of 2010. CAPREIT expects to realize a gain on the disposition of this property of approximately $1.5 million."One of our stated strategies is to continually monitor our portfolio to identify non-core properties, and to redeploy the capital from their disposition to acquire strategic assets better suited to our targeted portfolio composition and property management objectives. We had maximized the value we could achieve with this non-core property, and determined we could generate cash from the sale to help finance our purchases in the strong Western Canada market and other markets across Canada," commented Thomas Schwartz, President and Chief Executive Officer.Mr. Schwartz further commented, "With these transactions we have also enhanced the geographic and demographic diversification of our property portfolio and have strengthened our presence in a key Western Canada market.""Looking ahead, we remain very confident about our future prospects. Fundamentals in the rental residential business remain strong as demand for well maintained and well managed apartment and townhouse properties continues to increase in all of our key markets. In addition, our ongoing ability to access CMHC-guaranteed financing allows us to continue executing our mortgage re-financing and other programs that will further enhance our financial position and growth prospects. All of these factors will result in much improved value for our Unitholders over the long term," Mr. Schwartz concluded.As one of Canada's largest residential landlords, CAPREIT (TSX:CAR.UN) is a growth-oriented investment trust owning interests in 27,776 residential suites and two manufactured home communities comprising 1,316 land lease sites located in or near major urban centres from coast to coast. Since its Initial Public Offering in May 1997, CAPREIT has grown monthly distributions per Unit by 51%. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.capreit.net.FOR FURTHER INFORMATION PLEASE CONTACT: CAPREIT Mr. Michael Stein Chairman (416) 861-5788 or CAPREIT Mr. Thomas Schwartz President & CEO (416) 861-9404 or CAPREIT Mr. Richard J. Smith Chief Financial Officer (416) 861-5771 www.capreit.net