/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO, Dec. 6, 2019
/CNW/ - (TSX:CAR.UN) – Canadian Apartment Properties Real
Estate Investment Trust (TSX:CAR.UN) ("CAPREIT" or the "REIT")
announced today that it has closed its previously announced issue
and sale of 9,119,500 units for $53.60 per unit for aggregate gross proceeds of
$488,805,200 (the "Offering"), which
includes the exercise in full of the over-allotment option. The
Offering was sold through a syndicate of underwriters led by RBC
Capital Markets on a bought-deal basis. The Offering represents the
largest bought-deal equity offering by a real estate investment
trust in Canadian history.
CAPREIT intends to use the net proceeds of the Offering:
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i.
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to finance the REIT's
acquisition of approximately $161 million of unencumbered
multi-residential properties (the "Pending
Acquisitions");
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ii.
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to partially repay
its acquisition and operating facility in the amount of
approximately $168 million, which was utilized by CAPREIT to fund
$129 million of recently closed unencumbered acquisitions and
acquire $39 million of Irish Residential REIT shares;
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iii.
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to further repay its
acquisition and operating facility in the amount of approximately
$72 million;
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iv.
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to finance the $6
million acquisition of the freehold interest of 86 units in a
property in Toronto, Ontario that is currently leased by CAPREIT
(the "Pending Lease Buyout"); and
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v.
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the remainder to
finance future acquisitions in CAPREIT's acquisition pipeline, to
fund intensification opportunities within CAPREIT's existing
portfolio, for revenue-enhancing capital expenditures, and for
general trust purposes.
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ABOUT CAPREIT
CAPREIT is a growth-oriented investment
trust managing 64,028 suites and sites across Canada, the
Netherlands, and Ireland.
As at November 29, 2019, CAPREIT
owned interests, directly in Canada, and indirectly in the Netherlands through its investment in
European Investment Real Estate Investment Trust, a total of 60,362
residential units comprised of 48,687 residential suites and 72
manufactured home communities comprising 11,675 sites, all located
in and near major urban centres. CAPREIT is a 2019 AON-Hewitt Best
Employer in Canada. For more
information about CAPREIT, its business and its investment
highlights, please refer to our website at www.caprent.com or
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, including that the Pending Acquisitions and the
Pending Lease Buyout do not close, 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.
SOURCE Canadian Apartment Properties Real Estate Investment
Trust (CAPREIT)