180 units for $13.9 million
CALGARY, March 26 /CNW/ - Northern Property Real Estate Investment Trust (NPR.UN) has announced that it plans to acquire 80 apartment units in St. Paul, Alberta and 100 units in Yellowknife, Northwest Territories in two separate transactions which are expected to close April 1, 2010.
The St. Paul acquisition consists of 2 buildings on a single site, each having 40 suites. The buildings are in excellent condition. A modest capital program of $35,000 is planned in the coming months.
The Yellowknife property also has two buildings on a single site in a central location in the City. An extensive capital program estimated to cost $2.0 million is planned over the next two years. Work will include suite renovations and common area improvements. The installation of a wood pellet boiler heating system is planned as part of NPR's commitment to good energy practices and energy efficiency. The Yellowknife property is felt to have sufficient land to facilitate development of approximately 40 additional apartment units in the years ahead.
The projects taken together feature a going-in capitalization rate of 7.75% which is expected to improve over the next two years as the Yellowknife capital program is carried out.
St. Paul is a predominantly government and service industry community in north eastern Alberta. After the closing, NPR will have total of 135 units in the community. The units will be administered out of NPR's regional office in Lloydminster. Yellowknife is the capital of the NWT and has a diverse economy based on government activity and mining.
"Northern Property is pleased that economic conditions have improved to the point that we are prepared to resume acquisition activities", said Jim Britton, NPR President and CEO.
SOURCE Northern Property Real Estate Investment Trust
For further information: For further information: For additional information, please contact the office of the President, Northern Property REIT, (403) 531-0725