LITTLE ROCK, Ark. and TORONTO, Nov. 23, 2021 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") (TSX: HOM.U) (TSX: HOM.UN) announced today it has sold Windhaven Park Apartments in Plano, TX, consisting of 474 apartment units, and The Heritage at Hillcrest Apartments in Austin, TX, consisting of 286 apartment units, for gross proceeds of $147.9 million. All dollar amounts in this news release are denominated in US currency.
The net proceeds of $142.0 million were used to repay $59.0 million in mortgage debt, with the balance used to reduce the outstanding balance on the REIT's credit facility. The values of both communities were enhanced in part through the REIT's successful capital redevelopment program, and the communities have an average age of 38 years.
"Heritage at Hillcrest and Windhaven Park are two communities that have benefited significantly from the BSR management platform," said John Bailey, the REIT's Chief Executive Officer. "We have once again crystalized value created by our platform. We intend to reinvest the proceeds into investment grade properties situated in our core Texas markets of Austin, Dallas and Houston."
Since BSR completed its IPO, it has embarked on an aggressive capital recycling program. The REIT has acquired 19 core market acquisitions totaling approximately $1.1 billion, adding 5,907 apartment units with an average age of six years old. This compares with 39 dispositions totaling approximately $760.5 million and comprising 8,136 apartment units with an average age of 31 years old. Following the sales of Windhaven Park Apartments and The Heritage at Hillcrest Apartments, the REIT increased its acquisition capacity to $400 million and reduced its debt to gross book value to 38.5%.