TORONTO, Feb. 27, 2013 /CNW/ - Milestone Apartments Real Estate
Investment Trust (the "REIT") announced today that it has filed, and obtained a receipt for, a
final prospectus for its initial public offering of 20,000,000 trust
units with the securities commissions of all provinces and territories
in Canada. The units will be issued at a price of $10.00 per unit and
are expected to provide unitholders with an initial annual yield of
approximately 6.5%. The gross proceeds of the public offering will be
The net proceeds of the Offering will be used by the REIT to indirectly
acquire an interest in Milestone Multifamily Investors L.P. (the "Partnership") from MileSouth Apartment Portfolio LP ("MileSouth"), an affiliated entity of Invesco Ltd. The Partnership indirectly owns
and operates a portfolio of 52 multifamily properties in the United
States. Following closing, MileSouth will retain an approximate 48%
interest in the REIT, while MST Investors, LLC, an affiliate of The
Milestone Group, LLC, will hold an approximate 11% interest, in each
case calculated on a fully diluted basis (assuming all redeemable
securities are redeemed for units of the REIT). TMG Partners, L.P., an
affiliate of The Milestone Group, LLC, will be the external asset
manager of the REIT.
The offering is being underwritten by a syndicate of underwriters co-led
by BMO Capital Markets and CIBC. BMO Capital Markets is the sole
bookrunner on the transaction. The REIT has granted the underwriters an
over-allotment option, exercisable at any time up to 30 days following
the closing, to purchase up to an additional 3,000,000 units which, if
exercised in full, would increase the total gross proceeds to $230
million. The net proceeds of the over-allotment option will be used by
the REIT to indirectly acquire additional interests in the Partnership
from MileSouth and/or for working capital purposes.
The Toronto Stock Exchange has conditionally approved the listing of the
units under the symbol "MST.UN".
The offering is expected to close on March 6, 2013. A copy of the final
prospectus containing full details of the Offering and the REIT will be
available under the REIT's profile on SEDAR at www.sedar.com.
The units have not been, nor will they be, registered under the United
States Securities Act of 1933, as amended, and may not be offered, sold
or delivered, directly or indirectly, in the United States or to, or
for the account or benefit of, "U.S. persons" (as defined in Regulation
S under the United States Securities Act of 1933, as amended). This
press release does not constitute an offer to sell or a solicitation of
an offer to buy any of the units in the United States or to, or for the
account or benefit of, U.S. Persons.
About Milestone Apartments Real Estate Investment Trust
Milestone Apartments Real Estate Investment Trust is an unincorporated,
open-ended real estate investment trust established pursuant to a
declaration of trust under the laws of the Province of Ontario.
Concurrent with the completion of the offering and related
transactions, the REIT will acquire a portfolio of 52 multifamily
garden-style residential properties, comprising 16,944 units that are
located throughout the Southeast and Southwest United States.
The REIT's goals are to generate stable and growing cash distributions
to its unitholders while enhancing the value of its assets through
active management and expanding the REIT's asset base of multifamily
properties in the United States through accretive acquisitions.
About The Milestone Group
The Milestone Group is a privately held real estate investment
management company that acquires and manages multifamily real estate
assets in the United States on behalf of its clients. Founded in 2004,
The Milestone Group has completed nearly $3.2 billion of multifamily
acquisitions and over $1.3 billion of dispositions on behalf of leading
institutional investors globally, including a sovereign wealth fund and
a number of public and private pensions funds. The Milestone Group
currently acts as the asset manager for each of the properties that
will be acquired by the REIT in connection with the initial public
offering and will become the asset manager of the REIT thereafter.
This press release may contain forward-looking statements which reflect
management's current expectations regarding future events, including
those relating to the closing of the offering and related use of
proceeds. The forward-looking statements involve risks and
uncertainties. Actual results could differ materially from those
projected herein. The REIT disclaims any obligation to update these
SOURCE: Milestone Apartments Real Estate Investment Trust
For further information:
Robert P. Landin, CEO
Milestone Apartments Real Estate Investment Trust