Canadian Apartment Properties Real Estate Investment Trust (“CAP REIT”) (TSX: CAR.UN) announced today that it has acquired two adjoining apartment properties located in North Toronto close to the Bayview Shopping Centre. The complex, consisting of 143 mid-tier suites, has easy access to Sheppard Avenue, Highway 401 and the subway line. The purchase price for the property was $14.0 million ($98,000 per suite) with a new CMHC insured mortgage of $10.8 million for a 5 year term at an interest rate of 4.69%. The balance of the purchase was funded from CAP REIT’s acquisition facility.
The property has had extensive retrofits to the roof, windows, balconies and heating system. In addition, the opportunity exists to enhance cash flow from the property as a number of existing rents are well below market. Occupancy currently is 98.6%.
“We are pleased to be completing our first acquisition for 2008, and remain committed to achieving our annual target of acquiring between 1,500 and 2,000 suites once again this year,” commented Thomas Schwartz, President and Chief Executive Officer.
As one of Canada’s largest residential landlords, CAP REIT is a growth oriented investment trust owning interests in 27,996 residential suites and two land lease communities comprising 1,233 land lease sites located in or near major urban centres from coast to coast. Since its Initial Public Offering in May 1997, CAP REIT has grown monthly distributions per Unit by 51%. For more information about CAP REIT, its business and its investment highlights, please refer to our web site at http://www.capreit.net .
Contacts: CAP REIT Mr. Michael Stein Chairman (416) 861-5788 CAP REIT Mr. Thomas Schwartz President & CEO (416) 861-9404 CAP REIT Mr. Yazdi Bharucha CFO & Secretary (416) 861-5771 Website: http://www.capreit.net