TORONTO, ONTARIO--(Marketwired - July 31, 2014) - Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) announced today that it has completed the acquisition of a 213-suite apartment portfolio in Charlottetown, Prince Edward Island. The portfolio consists of nine quality low-rise properties, the majority close to downtown and all within walking distance of key transportation links, shopping, schools and recreational facilities.
The purchase price for the portfolio was approximately $19.6 million, satisfied by the assumption of existing mortgages totaling approximately $14.8 million bearing a weighted average stated interest rate at 3.79% and weighted average term to maturity of 3.0 years, with the remaining funded from CAPREIT's Acquisition and Operating credit facility.
"With this accretive purchase we have increased our Prince Edward Island portfolio to a total of 453 apartment suites and 500 land lease sites, sufficient critical mass to generate solid economies of scale and operating synergies," commented Thomas Schwartz, President and CEO. "In addition, as we implement our proven operating programs, energy management and purchasing systems, we expect cash flows contributed by the total PEI portfolio will increase over time."
About CAPREIT
As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 41,429 residential units, comprising 35,247 residential suites and 29 manufactured home communities comprising 6,182 land lease sites located in and near major urban centres across Canada. 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.