Marketwire
TORONTO, ONTARIO--(Marketwired - Sept. 10, 2013) - Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) announced today that it has completed the previously-announced acquisition of a portfolio of 338 apartment suites and 33,800 square feet of commercial and retail space in four properties in the city of Dublin, Ireland for a purchase price of approximately EUR42.7 million (approximately CDN $59.0 million), excluding transaction costs. CAPREIT paid for the portfolio using cash from a new EUR45.0 million credit facility for a term of five years at a rate of 3.2%. CAPREIT has entered into a two-year hedging program related to the portfolio's Euro-denominated cash flows. CAPREIT was the successful bidder in an auction for the properties conducted on behalf of receivers currently managing the portfolio.
All of the rental suites are modern, fully furnished, and include underground parking. Constructed between 2006 and 2008, the properties are well maintained, secure, and centered around attractive communal landscaped courtyards and gardens. All are situated in mature and growing residential neighbourhoods in and around the city of Dublin close to major employers, parks, transit, hospitals, shopping and cultural centres. Occupancy at the properties is currently approximately 93.0%.
"We have purchased these properties at very strong capitalization rates and all will be highly accretive to our cash flows," stated Thomas Schwartz, President and CEO. "Looking ahead, we will evaluate additional acquisition opportunities in Dublin to capitalize on the region's strong market fundamentals with demand significantly exceeding supply, solid occupancies and rising average monthly rents."
"This acquisition is also an excellent opportunity to leverage our proven expertise and people and build a professional property and asset management team in Dublin," Mr. Schwartz added. "There are very few large institutional owners of rental accommodation in the region, and we are confident our skills and hands-on approach will generate solid gains in cash flows going forward."
About CAPREIT
As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 38,502 residential units, comprising 35,132 residential suites and 14 manufactured home communities comprising 3,370 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.