Business & Finance
Business and Finance
Business and Finance
Mon, June 6, 2011 TRANSGLOBE APARTMENT REIT COMPLETES QUEBEC PORTFOLIO ACQUISITION AND PURCHASES NEW BRUNSWICK PROPERTY
MISSISSAUGA, ON, June 6, 2011 /CNW/ - TransGlobe Apartment Real Estate Investment Trust (TSX: TGA.UN) (the "REIT") announced today that it had completed the previously-announced acquisition of a complex of seven buildings known as Samuel Holland, in the City of Québec. The portfolio is comprised of five high-rise buildings, one mid-rise building and one low-rise building totalling 819 residential suites and approximately 162,000 square feet of commercial space. The purchase price of approximately $98.6 million was satisfied by a combination of approximately $29.5 million in cash funded by the proceeds of a recently completed offering of REIT units, and approximately $69.1 million aggregate principal amount of mortgage debt bearing an interest rate of 4.1% maturing in April 2013.
The REIT also announced today that it has entered into an agreement to acquire from a third-party, a three-storey 105 suite apartment building located in Moncton, New Brunswick. Constructed in 2001, the property is well-located, in close proximity to the REIT's other properties in Moncton and will benefit from ongoing operating synergies with the REIT's growing New Brunswick portfolio. The purchase price of approximately $8.2 million represents an acquisition cap rate of approximately 6.8% and will be satisfied in cash. Subsequent to closing which is expected on June 7, 2011, the REIT intends to secure 10 year CMHC financing on the property
"We are pleased to be extending our presence in both Quebec and New Brunswick as we continue to expand and further diversify our property portfolio," commented Kelly Hanczyk, the REIT's Chief Executive Officer. "Importantly, we believe these recent acquisitions will generate increased cash flows over time as we build critical mass in these strong rental markets."
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.
Forward-looking Statements
Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking statements are provided for the purposes of assisting the reader in understanding the REIT's financial position and results of operations as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information may relate to the REIT's future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the REIT. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the REIT or the real estate industry are forward-looking statements. In some cases, forward-looking information can be identified by such terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.
Forward-looking statements necessarily involve known and unknown risks and uncertainties, that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which, are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in the REIT's materials filed with Canadian securities regulatory authorities from time to time. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements as there can be no assurance that actual results will be consistent with such forward-looking statements.
Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including the following: the Canadian economy will remain stable over the next 12 months; inflation will remain relatively low; interest rates will remain stable; conditions within the real estate market, including competition for acquisitions, will be consistent with the current climate; the Canadian capital markets will provide the REIT with access to equity and/or debt at reasonable rates when required; TGIM and its affiliates will continue their involvement with the REIT; and the risks identified or referenced above, collectively, will not have a material impact on the REIT. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.
The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. Except as specifically required by law, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
