True North Apartment REIT strengthens its portfolio in Tillsonburg, Ontario
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TORONTO, Jan. 24, 2013 /CNW/ - True North Apartment Real Estate Investment Trust ("True North," or the "REIT") (TSXV: TN.UN) is pleased to announce the acquisition of 183 Lisgar Avenue, Tillsonburg, Ontario (the "Property"), at purchase price of $2.4 million.
The Property is comprised of 40 suites, consisting primarily of two or three bedroom units. Originally constructed in 1976, the Property is situated in close proximity to two other properties already owned by the REIT, both of which are also located in Tillsonburg. The Property is well maintained, in keeping with the REIT's stated strategy, and near-term capital expenditures are expected to be minimal.
The purchase price of $2.4 million implies a capitalization rate of approximately 6.52%. The purchase price will be financed through a combination of cash and $1.5 million in new mortgage debt. The new mortgage debt is a seven year mortgage at 3.68% interest rate. The impact on the capital structure is expected to be minimal.
"True North is very pleased to be able to further strengthen both our overall property portfolio and our position in Tillsonburg," stated Leslie Veiner, True North's Chief Executive Officer. "Our first two properties in Tillsonburg have demonstrated strong performance to date, and as a result we expect that this new acquisition will prove to be a positive addition to our portfolio."
Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking statements are provided for the purposes of assisting the reader in understanding the REIT's financial position and results of operations as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information may relate to the REIT's future outlook and anticipated events or other financial or operating results and may include statements regarding the financial position, business strategy, budgets, litigation, the implied capitalization rate of a particular acquisition, projected costs, anticipated capital expenditures, financial results, taxes, plans and objectives of or involving the REIT. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the REIT or the real estate industry are forward-looking statements. In some cases, forward-looking information can be identified by such terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.
Forward-looking statements necessarily involve known and unknown risks and uncertainties, that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the REIT's control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in the REIT's materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements as there can be no assurance that actual results will be consistent with such forward-looking statements.
Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion, including management's perceptions of historical trends, current conditions and expected future developments, including the closing of the previously announced property portfolio acquisition and associated public financing, as well as other considerations that are believed to be appropriate in the circumstances, including the following: the Canadian economy will remain stable over the next 12 months; inflation will remain relatively low; interest rates will remain stable; conditions within the real estate market, including competition for acquisitions, will be consistent with the current climate; the Canadian capital markets will continue to provide the REIT with access to equity and/or debt at reasonable rates when required; Starlight will continue its involvement as asset manager of the REIT in accordance with its current asset management agreement; and the risks identified or referenced above, collectively, will not have a material impact on the REIT. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.
The forward-looking statements made in this press release are dated, and relate only to events or information, as of the date of this press release. Except as specifically required by law, the REIT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
About the REIT
The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. Additional information concerning the REIT is available at www.sedar.com.
The REIT focuses on a long-term strategy to generate stable cash distributions on a tax-efficient basis for unitholders. The REIT intends to actively look for opportunities to expand its asset base and increase its distributable cash flow through acquisitions of additional multi-suite residential rental properties across Canada, the United States and other jurisdictions where opportunities may arise.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: True North Apartment Real Estate Investment TrustFor further information:
Chief Executive Officer
Chief Financial Officer