CAPREIT announces public unit financing of $350 million and six new multi-residential acquisitions

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[{"type":"text","content":"\n\n\n\nCAPREIT announces public unit financing of $350 million and six new multi-residential acquisitions\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Nov. 18, 2019\n\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/\n TORONTO, Nov. 18, 2019 /CNW/ - (TSX:CAR.UN) – Canadian Apartment Properties Real Estate Investment Trust (\"CAPREIT\" or the \"REIT\") announced today that it has agreed to sell, subject to regulatory approval 6,530,000, units at a price of $53.60 per unit for aggregate gross proceeds of $350,008,000 (the \"Offering\") to a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis. CAPREIT has granted the underwriters an over-allotment option (the \"Over-Allotment Option\"), exercisable in whole or in part up to 30 days after closing of the Offering, to purchase up to an additional 979,500 units to cover over-allotments, if any. CAPREIT also announced its intention to acquire six Canadian multi-residential properties, comprising 604 suites for an aggregate purchase price of $194 million.\nThe Offering\nCAPREIT will, within the next few days, file with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada, a preliminary short form prospectus relating to the issuance of the units. Closing of the Offering is expected to occur on or about December 6, 2019.\nCAPREIT intends to use the net proceeds of the Offering:  \ni. to finance the REIT's acquisition of approximately $194 million of unencumbered multi-residential properties (the \"Q4 Acquisitions\");\nii. to repay approximately $127 million of the REIT's acquisition and operating facility, which was used to fund $88 million of recently closed unencumbered acquisitions (the \"Closed Acquisitions\") and the acquisition of $39 million of Irish Residential REIT (\"IRES\") shares;\niii. to finance approximately $14 million to exercise existing operating lease buyouts (\"Operating Le...

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