Minto Apartment REIT announces agreement to acquire two high quality properties in Montreal for $281.1 million and concurrent $225 million bought deal public offering of trust units

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[{"type":"text","content":"\n\n\n\nMinto Apartment REIT announces agreement to acquire two high quality properties in Montreal for $281.1 million and concurrent $225 million bought deal public offering of trust units\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\nOTTAWA, Oct. 10, 2019\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES/\nAcquisition Highlights\nAcquisition of 100% interests in Le 4300 and Haddon Hall, two high quality properties in Montreal, together comprising 528 large suites, for approximately $281.1 million; Premium institutionally maintained properties in desirable urban locations that have received substantial capital investment in the last decade; Significant value expected to be generated from planned suite repositioning, with 86% of suites still to be renovated; Additional opportunities to generate revenue growth by realizing embedded gains to lease on suite turnover; Increases the REIT's exposure to the attractive Montreal market while complementing portfolio quality, in line with stated REIT strategy; Purchase price to be satisfied through a $225 million bought deal public offering of trust units, a new $45 million mortgage and the REIT's credit facility; and The Offering provides excellent balance sheet flexibility to capitalize on future NAV enhancing opportunities. OTTAWA, Oct. 10, 2019 /CNW/ - Minto Apartment Real Estate Investment Trust (TSX: MI.UN) (the \"REIT\") today announced that it has entered into an agreement to acquire Le 4300 and Haddon Hall, two premium institutionally owned and maintained multi-residential properties in Montreal, Quebec (the \"Acquisition\"). The properties have a combined 528 suites and are located in the highly attractive neighbourhoods of Westmount and Ville-Marie. The properties are also located in close proximity to the REIT's existing Rockhill property, enhancing economies of scale. The purchase price is approximately $281.1 million, representing an implied cap rate of 3.70% on forecasted year-one net operating income. Following closing of th...

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