Press release from Marketwire
CAPREIT Completes Acquisition of 2,308 MHC Sites in New Brunswick
Friday, November 29, 2013
CAPREIT Completes Acquisition of 2,308 MHC Sites in New Brunswick17:00 EST Friday, November 29, 2013
TORONTO, ONTARIO--(Marketwired - Nov. 29, 2013) - Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) announced today that it has completed the previously announced acquisition of 2,308 land lease sites in eleven Manufactured Housing Communities ("MHC") in New Brunswick.
The eleven communities are located primarily in scenic rural areas with most close to the major centres of Saint John, Fredericton, Moncton, Bathurst and Beresford. The portfolio includes Pine Tree Village, Atlantic Canada's premier manufactured housing community with 828 modern and spacious sites in a park-like setting adjacent to the Royal Oaks Golf Club. One community, White Frost Estates situated on the Petitcodiac River near Moncton, includes 16.5 acres of undeveloped land for future expansion.
CAPREIT paid approximately $69.0 million for the MHC portfolio satisfied initially in cash through CAPREIT's Acquisition and Operating credit facility.
With the completion of this acquisition, CAPREIT's total MHC portfolio now aggregates 6,178 land lease sites located in New Brunswick, Prince Edward Island, Ontario, Saskatchewan, Alberta and British Columbia representing approximately 14.9% of the REIT's total suites and sites.
"With this purchase we are further geographically diversifying our portfolio as well as expanding and strengthening our presence in the highly stable MHC business," stated Thomas Schwartz, President and CEO. "With the strong capitalization rates being generated by the portfolio, we expect the properties will be immediately accretive to our Funds from Operations and make a solid and growing contribution in the years ahead."
As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 41,550 residential units, comprising 35,372 residential suites and 29 manufactured home communities comprising 6,178 land lease sites located in and near major urban centres across Canada and in Dublin, Ireland. For more information about CAPREIT, its business and its investment highlights, please refer to our website at 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. The closing of the acquisition described in this press release is subject to standard closing conditions, including obtaining third party deliverables, which are beyond CAPREIT's control. There are no assurances that the conditions to the agreement will be satisfied or the proposed acquisition will be completed on its current terms or at all.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Michael Stein
Mr. Thomas Schwartz
President & CEO
Mr. Scott Cryer
Chief Financial Officer