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LITTLE ROCK, AR and TORONTO, June 4, 2018 /CNW/ - BSR Real Estate Investment Trust ("BSR" or the "REIT") (TSX: HOM.U) announced today that it has completed, effective June 1, 2018, the acquisition of Brandon Place, a 200 unit garden-style residential community in Oklahoma City, OK for US$23.4 million. Consideration for the transaction included US$3.7 million in cash, with the balance comprising the assumption of a 35-year mortgage bearing an interest rate of 3.95%. This transaction was previously subject to a binding purchase and sale agreement as disclosed in the REIT's initial public offering ("IPO") prospectus dated May 11, 2018.
"We are pleased to close on the Brandon Place acquisition, as contemplated during our IPO process," said John Bailey, Chief Executive Officer of the REIT. "The acquisition is consistent with our strategy of clustering properties in strong suburban markets characterized by diversified employment bases and above-average population and employment growth."
Built in 2011, Brandon Place is a collection of 17 two-story garden-style residential buildings with considerable outdoor entertainment and abundant nearby commercial activity. The community is well-located near the John Kilpatrick Turnpike, the Northwest Expressway and Interstate 40, with downtown Oklahoma City 20 minutes away. Amenities include a swimming pool, fitness centre and community clubhouse.
About BSR Real Estate Investment Trust
BSR Real Estate Investment Trust is an internally managed, unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT owns a portfolio of 48 multifamily garden-style residential properties consisting of 9,879 apartment units located across five bordering states in the Sunbelt region of the United States.
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the REIT's expectations, estimates, forecasts and projections. The forward-looking statements in this news release are based on certain assumptions. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the REIT's prospectus dated May 11, 2018 which is available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE BSR Real Estate Investment Trust
For further information: Susan Koehn, Chief Financial Officer, BSR Real Estate Investment Trust, Tel: 501.371.6335, Fax: 501.374.3383