CANADIAN APARTMENT PROPERTIES REAL ESTATE INVESTMENT TRUST ANNOUNCES CLOSING<br>OF PARTIAL EXERCISE OF OVER-ALLOTMENT OPTION

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

TORONTO, Dec. 23 /CNW/ - Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN) ("CAPREIT") announced today that it has successfully closed the issuance of an additional 350,000 units at $17.30 per unit for gross proceeds of approximately $6.1 million, pursuant to the partial exercise of the over-allotment option granted to the underwriters led by RBC Capital Markets in connection with the recent unit offering that closed on December 10, 2010 (the "Offering") on the same terms as the Offering. Gross proceeds from the unit offering of 7,250,000 units and the partial exercise of the over-allotment option total approximately $131.5 million.

As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 27,172 residential suites and two manufactured home communities comprising 1,325 land lease sites located in and near major urban centres across Canada. Since its Initial Public Offering in May 1997, CAPREIT has grown monthly distributions per unit by 51%. For more information about CAPREIT, its business and its investment highlights, please refer to our public disclosure which can be found under our profile at www.sedar.com.

All statements in this press release that do not relate to historical facts constitute forwardlooking statements. These statements represent CAPREIT's intentions, plans, expectations and beliefs and are subject to certain risks and uncertainties that could result in actual results differing materially from these forward-looking statements. These risks and uncertainties are more fully described in regulatory filings that can be obtained on SEDAR at www.sedar.com.

For further information:

CAPREIT Mr. Michael Stein    Chairman [phone]

CAPREIT Mr. Thomas Schwartz    President & CEO [phone]

CAPREIT Mr. Richard J. Smith Chief Financial Officer [phone]