CAPREIT Enters Vibrant Prince Edward Island Market

Canadian Apartment Properties Real Estate Investment Trust  announced that it had acquired a portfolio of 240 residential suites and 500 land lease sites in four communities located in Charlottetown and Cornwall, Prince Edward Island. CAPREIT paid approximately $34.9 million for the portfolio, satisfied by the assumption of mortgage debt of approximately $10.3 million bearing a weighted average interest rate of 4.5%, with the balance in cash from CAPREIT's Acquisition and Operating credit facility.
The apartment buildings are located in quiet residential neighbourhoods close to downtown Charlottetown. Waterview Heights is a four-building complex of 60 suites with spectacular ocean views located close to major shopping. River Ridge Heights is a luxury, two-building complex with 108 suites overlooking the Hillsboro River minutes from downtown. Adjacent to the apartment property is River Ridge Estates containing 78 manufactured home land lease sites as well as a large undeveloped area with the potential to add another 117 sites over time. Included in the portfolio is Chateau Estates, a 167 land lease site property in Cornwall, Prince Edward Island.
"We are very pleased to be making our first acquisition in Prince Edward Island, further strengthening and diversifying our property portfolio and entering a new market that we are confident will provide additional opportunities for growth in the future," stated Thomas Schwartz, President and CEO. "Most importantly, with the strong capitalization rates being generated by the portfolio, the transaction will be immediately accretive to our Funds from Operations."

on October 24, 2013