CAPREIT Acquires Landmark Olympic Village Property in Montreal
TORONTO, ONTARIO--(Marketwire - Nov. 1, 2012) - Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) announced today that it has completed the acquisition of the landmark Olympic Village property in Montreal. This iconic luxury property consists of 980 residential suites and 237,000 square feet of commercial and retail space in unique twin 21-storey pyramid towers on 25 acres of landscaped parkland. With the completion of this acquisition, CAPREIT's properties in the Province of Quebec will now represent approximately 19.3% of its total portfolio, its second largest geographic market.
Originally constructed as the athlete's residence for the 1976 Summer Olympic Games in Montreal, the property has evolved into a landmark luxury residential complex offering an exceptional living and work environment. This self-contained community provides residents with an urban setting surrounded by beautiful parkland and recreational space, only seven kilometers from downtown Montreal. It sits next to a municipal golf course and is adjacent to the Montreal Botanical Gardens, which ranks as one of the world's largest and most spectacular botanical gardens. The property is in close proximity to the 65-acre Maisonneauve Park and the famous Olympic Park housing the Olympic Stadium, Arena Maurice Richard, the Biodome and a new multi-screen movie theatre. The property is also close to two subway stops and other public transportation routes, major hospitals, schools and shopping centres.
"We are very proud to be adding this iconic property to our growing portfolio, and welcome all the Olympic Village residents and commercial tenants to the CAPREIT family," commented Thomas Schwartz, President and CEO. "This is a major and important acquisition for CAPREIT, and a further testament to our commitment to remain a provider of high quality rental accommodation in the City of Montreal and the Province of Quebec."
The residential property contains a well-balanced mix of bachelor, one, two and three bedroom suites, with high quality amenities such as indoor parking, an indoor pool and golf driving range, a sauna and fitness facility, clubhouse, grocery store and other retail services. The residential suites are currently 96% occupied.
Retail space provides numerous services for residents. The retail and commercial space is approximately 96% occupied.
The purchase price of $176.5 million was satisfied by the assumption of an existing $82 million first mortgage bearing interest at 4.39% maturing in September 2013, with opportunity for additional mortgage top-up financing in the future. The balance was funded from CAPREIT's Acquisition and Operating Facility. CAPREIT is planning on enhancing the property over time and the majority of the existing staff, including the general manager, will be retained to properly service all commercial and residential residents.
CAPREIT is a growth-oriented investment trust owning interests in multi-unit residential rental properties, including apartments, townhomes and manufactured home communities located in and major urban centres across Canada. CAPREIT owns interests in 37,225 residential units, comprised of 33,855 residential suites and 14 manufactured home communities ("MHC") comprising 3,370 land lease sites. For more information about CAPREIT, its business and its investment highlights, please refer to our website at 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 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Michael Stein
Mr. Thomas Schwartz
President & CEO
Mr. Scott Cryer
Chief Financial Officer