The Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) (TSX:CAR.UN) has strengthened its presence in B.C. with yesterday’s announcement that it is acquiring five properties comprising 495 suites in Greater Vancouver.
The total purchase price, excluding acquisition and closing costs, will be approximately $72 million.
CAPREIT expects to finance the acquisition with 10-year CMHC-insured mortgages of approximately $49 million. The balance will be funded from its acquisition and operating facility.
The acquisition is scheduled to close in mid-April.
“This strategic transaction further strengthens and diversifies our property portfolio and enhances our presence in the growing British Columbia market,” commented Thomas Schwartz, CAPREIT president and CEO. “Importantly, the acquisition will leverage our existing regional infrastructure, which will result in operating cost savings.”
Toronto-based CAPREIT is one of Canada’s largest owners of multi-family rental communities with owning interest in more than 27,000 residential suites and manufactured home communities in and around major urban centres nationwide.
The company’s portfolio is valued at more than $3 billion and last year it posted a net operating income of more than $187 million.
At press time, shares in CAPREIT were trading at $19.23.