CAPREIT to Invest in Canadian Housing Supply with Construction of 170 Residential Suites Within Existing Portfolio

About this update from Canadian Apartment Properties Real Estate Investment Trust

[{"type":"text","content":"CAPREIT to Invest in Canadian Housing Supply with Construction of 170 Residential Suites Within Existing Portfolio\n\n\n\n TORONTO, June 02, 2025 (GLOBE NEWSWIRE) -- Canadian Apartment Properties Real Estate Investment Trust (“\n \n CAPREIT\n \n ”) (TSX:CAR.UN) announced today that it is planning to invest in two infill development projects for the construction of an estimated 120 residential rental suites on excess land in Mississauga, Ontario (the “\n \n GTA Development Projects\n \n ”). Additionally, CAPREIT is underway with the conversion of certain underutilized non-residential spaces identified throughout its current apartment portfolio for the construction of an estimated 50 additional residential rental suites (the “\n \n Conversion Projects\n \n ”). All plans disclosed herein are subject to the receipt of outstanding municipal planning and permit approvals, as well as any other required approvals, and are subject to change and such changes may be significant. There can be no assurance that all requirements for approval or completion will be obtained, satisfied or waived.\n \n\n\n The GTA Development Projects\n \n\n\n CAPREIT is capitalizing on (i) available government incentives, (ii) construction efficiencies and (iii) project synergies, as outlined below, to lower development risks and make it economically attractive to invest in the construction of an estimated 120 new residential rental suites across the GTA Development Projects. The GTA Development Projects are expected to earn attractive risk-adjusted returns, which are above what is generally achievable in the market today, while allowing CAPREIT to directly contribute to the much-needed supply of family-oriented “missing middle” housing in the Greater Toronto Area. The GTA Development Projects are expected to begin construction in 2027 with anticipated completion in 2028.\n \n\n i.\n \n Applicable incentives for new purpose-built rental construction in Mississauga include:\n \n\n\n\n Enhanced federal and provincial harmonized sales tax rebates;\n \n\n Municipal development charge reductions (100% exemption on 3-bedroom suites; 50% exemption on all other suite types); and\n \n\n Municipal property tax reductions (35% reduction for 35-year period).\n \n\n\n ii.\n \n Efficiencies for constructing low-rise wood...

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