Business & Finance
Business and Finance
Business and Finance
Mon, February 28, 2011
Sun, February 27, 2011
Sat, February 26, 2011
Fri, February 25, 2011 TransGlobe Apartment REIT to Acquire New Brunswick Apartment Portfolio
MISSISSAUGA, ON, Feb. 25 /CNW/ - TransGlobe Apartment Real Estate Investment Trust (TSX: TGA.UN) (the "REIT") announced today that it would be acquiring a portfolio of five complexes comprising twenty apartment properties located in Moncton, Dieppe and Shediac, New Brunswick aggregating 543 suites. The properties have been well maintained and possess an average age of only twelve years. Current average occupancy for the portfolio to be acquired is approximately 94%.
The purchase price for the portfolio will be approximately $38.4 million and will be satisfied by the assumption of debt of approximately $19.5 million, with a weighted average interest rate of 4.04% and a weighted average term to maturity of 3.82 years, and the balance in cash. Closing is expected on or before March 1, 2011. The purchase is expected to be immediately accretive to AFFO with an implied capitalization rate of approximately 6.78%.
"This is the REIT's first acquisition from an independent third party vendor, augmenting our significant pipeline of captive growth opportunities with TransGlobe Investment Management," commented Kelly Hanczyk, Chief Executive Officer. "With this key, off-market acquisition, we are also enhancing our existing presence in the strong New Brunswick market. In addition, this modern and exceptionally well-maintained portfolio is well positioned to generate steady and stable increases in net operating income and our return on investment over time."
About TransGlobe Apartment Real Estate Investment Trust
TransGlobe Apartment Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust owning a growing portfolio of high quality apartment and town house properties well-located in urban centres in Alberta, Ontario, Québec, New Brunswick and Nova Scotia.
This press release contains forward-looking statements which reflect the REIT's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The REIT disclaims any obligation to update these forward-looking statements except as required by securities laws.
