VANCOUVER, Dec. 30, 2015 /CNW/ - Pure Multi-Family REIT LP ("Pure Multi") (TSXV: RUF.U, RUF.UN, RUF.DB.U; OTCQX: PMULF) announced today the successful and profitable sale of Windsong Apartments ("Windsong"), located in Dallas, Texas, for gross proceeds of US$22.0 million.
Windsong is comprised of 264 residential units, situated on 10.0 acres of land and was built in 1985. Pure Multi acquired Windsong in July 2013 for US$16.5 million. As part of Pure Multi's commitment to create value for its unitholders through selective dispositions of its Class B assets, Pure Multi anticipates using the net proceeds from this sale to improve the overall quality of the portfolio by acquiring a high-quality Class A property.
Stephen Evans, CEO stated, "We are very happy to continue to execute on our value-add strategy culminating in the successful sale of Windsong, one of the oldest assets in our portfolio, at a significant profit. Despite having very low leverage on this asset, we achieved an annualized gain on the equity invested of approximately 26%. We are pleased to once again be able to utilize the 1031 like-kind exchange that exists in the U.S., as we intend to re-invest the net proceeds, on a tax-deferred basis, into newer, high quality assets in our target markets, which will enhance the overall quality of our portfolio."
About Pure Multi-Family REIT LP
Pure Multi is a Canadian based, publicly traded vehicle which offers investors exclusive exposure to attractive, institutional quality U.S. multi-family real estate assets.
Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward looking statements in this news release include: (i) as part of Pure Multi's commitment to create value for its unitholders through selective dispositions of its Class B assets, Pure Multi anticipates using the net proceeds from this sale to improve the overall quality of the portfolio by acquiring a high-quality Class A property; and (ii) we are pleased to once again be able to utilize the 1031 like-kind exchange that exists in the U.S., as we intend to re-invest the net proceeds, on a tax-deferred basis, into newer, high quality assets in our target markets, which will enhance the overall quality of our portfolio.
The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by Pure Multi. Although Pure Multi believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Pure Multi can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to identify, negotiate the purchase of and acquire quality Class A assets, competitive factors in the industries in which Pure Multi operates, prevailing economic conditions, and other factors, many of which are beyond the control of Pure Multi.
The forward-looking statements contained in this news release represent Pure Multi's expectations as of the date hereof, and are subject to change after such date. Pure Multi disclaims any intention or obligation to update or revise any forward-looking statements whether as a result.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Pure Multi-Family REIT LP
For further information: Andrew Greig, Director of Investor Relations, Pure Multi-Family REIT LP, Suite 910, 925 West Georgia Street, Vancouver, BC V6C 3L2, Phone: (604) 681-5959 or (888) 681-5959, E-mail: [email protected]