TORONTO, ONTARIO -- (Marketwired) -- 07/29/15 -- Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX: CAR.UN) announced today that it has entered into an agreement to acquire a one-third undivided interest in the residential component of the King High Line Project, a mixed-use property development located at 1100 King Street West in downtown Toronto, Ontario (Liberty Village). The property will consist of approximately 160,000 square feet of commercial retail space (which will not be owned by CAPREIT), and three rental residential towers containing 506 apartment suites of various sizes, including some designed for families, over four levels of below-grade parking. CAPREIT will pay $60.3 million for its interest in the residential component of the development, financed by cash from CAPREIT's Acquisition and Operating credit facility.
CAPREIT has been granted the property management contract and will be responsible for the lease-up of the residential towers for a market fee. Closing will take place upon substantial completion of construction, which is expected to occur in 2018.
CAPREIT is partnering with First Capital Realty Inc. (TSX: FCR), Canada's leading owner, developer and manager of well-located grocery anchored retail properties, and First Capital Realty Inc.'s existing partner, an experienced developer of residential properties in Toronto's King West neighbourhood.
"We are very pleased to be entering into our first joint venture contract to develop and lease this prestigious residential property targeted at meeting the significant and growing demand for high quality new rental accommodation in downtown Toronto," commented Thomas Schwartz, President and CEO.
"We expect our interest in the property, combined with the property management fees we will receive, will be accretive to our cash flow and set the stage for similar partnerships, along with our own new rental developments in the future."
ABOUT CAPREIT
As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 41,979 residential units, comprising 35,694 residential suites and 30 manufactured home communities comprising 6,285 land lease sites located in and near major urban centres across Canada. 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.
Contacts:
CAPREIT
Mr. Michael Stein
Chairman
(416) 861-5788
CAPREIT
Mr. Thomas Schwartz
President & CEO
(416) 861-9404
CAPREIT
Mr. Scott Cryer
Chief Financial Officer
(416) 861-5771
