CAPREIT Completes Acquisition of 2,308 MHC Sites in New Brunswick

Canadian Apartment Properties Real Estate Investment Trust announced that it has completed the previously announced acquisition of 2,308 land lease sites in eleven Manufactured Housing Communities ("MHC") in New Brunswick.
The eleven communities are located primarily in scenic rural areas with most close to the major centres of Saint John, Fredericton, Moncton, Bathurst and Beresford. The portfolio includes Pine Tree Village, Atlantic Canada's premier manufactured housing community with 828 modern and spacious sites in a park-like setting adjacent to the Royal Oaks Golf Club. One community, White Frost Estates situated on the Petitcodiac River near Moncton, includes 16.5 acres of undeveloped land for future expansion.
CAPREIT paid approximately $69.0 million for the MHC portfolio satisfied initially in cash through CAPREIT's Acquisition and Operating credit facility.
With the completion of this acquisition, CAPREIT's total MHC portfolio now aggregates 6,178 land lease sites located in New Brunswick, Prince Edward Island, Ontario, Saskatchewan, Alberta and British Columbia representing approximately 14.9% of the REIT's total suites and sites.
"With this purchase we are further geographically diversifying our portfolio as well as expanding and strengthening our presence in the highly stable MHC business," stated Thomas Schwartz, President and CEO. "With the strong capitalization rates being generated by the portfolio, we expect the properties will be immediately accretive to our Funds from Operations and make a solid and growing contribution in the years ahead."

on December 6, 2013