LITTLE
ROCK, Ark. and TORONTO, Jan. 9, 2025
/CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT")
(TSX: HOM.U) (TSX: HOM.UN) announced today that it has acquired The
Venue Craig Ranch Apartments ("The Venue") in the fast growing
McKinney submarket of the
Dallas/Fort Worth ("DFW")
metropolitan statistical area ("MSA") for a purchase price of
$61 million.
The Venue is a Class "A" multifamily community constructed in
2017 with 277 apartment units made up of one, two, and
three-bedroom floorplans. It features attached garages, a large
business center, gourmet kitchens featuring stainless steel
appliances, spacious dog park, walk-in closets, resort-style
swimming pool and modern fitness center and is zoned to the Frisco
Independent School District which is ranked in the Top 1% in
Texas and Nationwide.
"The Venue Craig Ranch is a perfect addition to BSR's portfolio
and is in a high-growth DFW submarket that we know well," said
Dan Oberste President and Chief
Executive Officer of the REIT. "As we integrate The Venue into
BSR's proven management platform, we expect to identify
opportunities to enhance the operating income from the property.
Our talented team continues to identify opportunistic transactions
in a challenging environment. We expect to see more rotation and
acquisition opportunities arising as the transaction market
improves."
The REIT will fund the acquisition by drawing on its revolving
credit facility and intends to sell approximately $60 million in assets in 2025 to reduce the
balance then outstanding.
BSR now owns and operates 9,181 apartments units total, with
3,502 or 38% in the DFW MSA. Dallas has been the leading US market in terms
of both demand for rental accommodation and absorption of new
supply, positioning the market for significant potential growth in
rental rates.
BSR also announced the redemption in full of all
issued and outstanding Convertible Debentures on January
3rd 2025. The REIT previously announced its
intention to redeem the Convertible Debentures in its Q3 2024
earnings release. The aggregate principal amount was $41.5 million, plus accrued and unpaid interest.
The redemption of the Convertible Debentures was funded by drawing
on the REIT's revolving credit facility.
About BSR Real Estate Investment Trust
BSR Real Estate Investment Trust is an internally managed,
unincorporated, and open-ended real estate investment trust
established pursuant to a declaration of trust under the laws of
the Province of Ontario. The REIT
owns a portfolio of multifamily garden-style residential properties
located in attractive primary and secondary markets in the Sunbelt
region of the United States.
Forward-Looking Statements
This news release may contain forward-looking statements
(within the meaning of applicable securities laws) relating to the
business of the REIT. Forward-looking statements are identified
by words such as "believe", "anticipate",
"project", "expect", "intend", "plan",
"will", "may", "estimate" and other similar expressions. The
forward-looking statements in this news release are based on
certain assumptions. They are not guarantees of future performance
and involve risks and uncertainties that are difficult to control
or predict. A number of factors could cause actual results to
differ materially from the results discussed in the forward-looking
statements, including, but not limited to, the factors discussed
under the heading "Risk Factors" in the REIT's Management's
Discussion and Analysis for the third quarter of 2024, dated
November 7, 2024, which is available
at www.sedar.com. There can be no assurance that forward-looking
statements will prove to be accurate as actual outcomes and results
may differ materially from those expressed in these forward-looking
statements. Readers, therefore, should not place undue reliance on
any such forward-looking statements. Further, these forward-looking
statements are made as of the date of this news release and, except
as expressly required by applicable law. The REIT assumes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
SOURCE BSR Real Estate Investment Trust