TransGlobe Apartment REIT Completes Acquisitions

TransGlobe Apartment Real Estate Investment Trust (REIT) announced 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 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." 

on June 6, 2011