/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/
TORONTO, Nov. 19, 2019 /CNW/ - (TSX:CAR.UN) – Canadian
Apartment Properties Real Estate Investment Trust ("CAPREIT" or the
"REIT") announced today that due to strong demand, the size of the
previously announced equity offering in connection with which it
entered into an agreement to sell to a syndicate of underwriters
led by RBC Capital Markets has increased, on a bought deal basis,
to 7,930,000 units at a price of $53.60 per unit for gross proceeds of
approximately $425 million (the
"Offering"). CAPREIT has granted the underwriters an
over-allotment option (the "Over-Allotment Option"), exercisable in
whole or in part up to 30 days after closing of the Offering, to
purchase up to an additional 1,189,500 units to cover
over-allotments, if any. If the Over-Allotment is exercised
in full, the gross proceeds would increase to approximately
$489 million.
CAPREIT will, within the next few days, file with the securities
commissions and other similar regulatory authorities in each of the
provinces and territories of Canada, a preliminary short form prospectus
relating to the issuance of the units. Closing of the Offering is
expected to occur on or about December 6,
2019.
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 $194 million of unencumbered
multi-residential properties;
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ii.
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to repay
approximately $127 million of the REIT's acquisition and operating
facility, which was used to fund $88 million of recently closed
unencumbered acquisitions and the acquisition of $39 million of
Irish Residential REIT shares;
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iii.
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to finance
approximately $14 million to exercise existing operating lease
buyouts, converting two Toronto properties to traditional fee
simple property interests; and
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iv.
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the remainder, if
any, to finance future acquisitions in CAPREIT's robust pipeline,
to fund intensification opportunities within CAPREIT's existing
portfolio, for revenue-enhancing capital expenditures, and for
general trust purposes.
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The above use of proceeds are described in more detail in
CAPREIT's press release dated November 18,
2019.
CAPREIT intends to make monthly cash distributions to
unitholders of record on each record date, on or about the
15th day of the month following the record date.
CAPREIT's current monthly cash distribution is $0.1150 per unit ($1.38 annually). The first cash distribution to
which purchasers of the units under this Offering will be entitled
to participate will be for the month of December, with a record
date of December 31, 2019 and a
payment date of January 15, 2020.
This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, any securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful. The
securities being offered have not been and will not be registered
under the U.S. Securities Act of 1933 as amended and may not be
offered or sold in the United
States absent registration or pursuant to applicable
exemption from registration.
ABOUT CAPREIT
CAPREIT is a growth-oriented investment
trust managing 63,907 suites and sites across Canada, the
Netherlands, and Ireland.
It owns interests, directly in Canada, and indirectly in the Netherlands through its investment in
ERES, a total of 60,241 residential units, comprising 48,566
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 Q4 Acquisitions do not close, the
projected net operating income for the Closed Acquisitions and for
the Q4 Acquisitions on which the cap rates cited are based on is
not achieved, 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)