CAP Closes Two Deals in Toronto, Victoria, Canada

Canadian Apartment Properties Real Estate Investment Trust has just wrapped up the acquisition of a 50 percent interest in a 784-unit apartment portfolio from CST Corp. All eight buildings are in the Toronto area, and both the seller and buyer are based in the city. CAP REIT shelled out a total of $45 million to become co-owner of the high-quality portfolio, which boasts an average occupancy level of 98 percent. In addition, the firm has also just taken a 137-unit multi-family in British Columbia for $14 million. The group of multi-family assets includes a four-structure high-rise apartment community with 369 residences and a 74-unit upscale apartment building in East Toronto; a townhouse complex with 93 residences and a 137-unit property in North York; and a 111-unit townhouse building in Etobicoke. CAP REIT financed the purchase of half of the portfolio via its acquisition facility, in addition to the assumption of existing mortgages totaling $15 million at an average interest rate of approximately 4.75 percent, and new CMHC-insured mortgages totaling $14.7 million at an average interest rate of 4.55 percent. Cap also waived conditions to acquire a 137-suite 10 storey apartment building in Victoria, B. C. The expected purchase price of $14.2 million will be satisfied by new CMHC-Insured financing of approximately $10 million for a five-year term, with the balance from the an acquisition facility. The closing is expected on August 29, 2008. Occupancy is currently 100 percent. Once completed, Cap will have 1,799 suites, or 6.3 percent of its total portfolio, in British Columbia. The transaction will let Cap hit its annual growth target for the tenth consecutive year. One of Canada’s largest residential landlords, CAP owns interests in 27,324 residential suites and two land lease communities comprising 1,267 sites located in or near major urban centers. Since its IPO May 1997, CAP has grown monthly cash distributions per unit by 51 percent.