TORONTO / DALLAS, May 14, 2014 /CNW/ - Milestone Apartments REIT (TSX: MST.UN) ("Milestone" or the "REIT") today announced that it has completed the purchase of Harbor Creek, a 316-unit garden-style multifamily apartment community located in the Canton submarket of Atlanta, Georgia, for a purchase price of US$28.0 million. This acquisition was previously announced by the REIT on May 1, 2014.
Harbor Creek was built in two phases in 2003 and 2007, and is currently approximately 98% occupied. The property features extensive amenities consistent with the REIT's established portfolio and benefits from its close proximity to several employment centers and major transportation corridors, including downtown Atlanta.
The acquisition was funded using proceeds raised from the previously announced equity bought deal financing and the refinancing of the US$228.6 million mortgage debt facility, both completed in April 2014. The REIT is in the process of placing a seven-year, interest only fixed-term mortgage of approximately US$15.7 million on Harbor Creek, at an interest rate of approximately 3.55%. Finalization of this financing is expected by May 30, 2014 and is subject to customary closing procedures.
About Milestone Apartments REIT
Milestone Apartments REIT is an unincorporated, open-ended real estate investment trust that is governed under the laws of Ontario. The REIT's portfolio consists of 55 multifamily garden-style residential properties, comprising 17,964 units that are located in 11 major metropolitan markets throughout the Southeast and Southwest United States. Milestone Apartments REIT is the largest REIT listed on the TSX focused solely on the U.S. multifamily sector. The REIT operates its portfolio through its internal property management company, Milestone Management, with more than 900 employees across the U.S. Based in Dallas, TX, TMG Partners, L.P., an affiliate of The Milestone Group, is the external asset manager of the REIT. For more information, please visit www.milestonereit.com.
About The Milestone Group
The Milestone Group is a privately-held real estate investment management company with expertise and presence in major metropolitan markets throughout the United States. The firm has corporate offices in Dallas, TX and New York, NY with regional acquisition and management offices across the United States. Founded in 2004, The Milestone Group has a strong track record of investing in the U.S. multifamily sector, including completion of more than US$4.5 billion in multifamily transactions. For more information, please visit www.milestonegp.com.
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the REIT's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the ability to arrange mortgage financing for Harbor Creek on the terms described. 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 annual information form 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 any such statement, whether as a result of new information, future events or otherwise.
SOURCE: Milestone Apartments REIT
For further information:
Robert Debs, Investor Relations
Milestone Apartments REIT
BMIR Investor Relations
Tel: 416.447.4740, x 232