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VANCOUVER, May 27, 2014 /CNW/ - Pure Multi-Family REIT LP ("Pure Multi") (TSXV: RUF.U, RUF.DB.U; OTCQX: PMULF) announced today that it has entered into a conditional agreement to acquire a multi-family apartment community located in Houston, Texas (the "Property"), for a purchase price of US$43,800,000.
The Property, known as Walker Commons ("Walker Commons"), was constructed in 2008 and consists of 352 residential units located in 12 two and three-storey buildings with units averaging over 927 square feet. The 18.69 acre property is located in League City, a southeastern suburb of Houston, and includes a clubhouse, athletic center, resort-style swimming pool, outdoor living room with a fireplace, and a poolside cabana with grills for outdoor entertaining.
The purchase price of US$43,800,000 represents an appraised capitalization rate of 6.00%. The acquisition of the Property is subject to the satisfaction of customary conditions precedent and is expected to close in late June, 2014, subject to Board approvals.
Pure Multi intends to fund a portion of the purchase price of the Property with cash from Pure Multi's private placement financing which closed on May 21, 2014, and a new first mortgage financing.
Steve Evans, CEO, said "We are pleased to be adding Walker Commons to the Pure Multi Houston portfolio as we continue to expand our presence in the Houston market. Walker Commons renews the weighted average age of our portfolio by nearly two years (from 1993 to 1995). Walker Commons is situated in the dynamic suburban Houston submarket of League City that continues to benefit from very robust job and population growth along the main transportation corridor between Galveston and the Port of Houston."
The property will be acquired indirectly by Pure Multi from a wholly-owned subsidiary of Sunstone U.S. No. 2 Opportunity Realty Trust ("Sunstone"). Pure Multi and Sunstone are non-arm's length parties in accordance with the policies of the TSX Venture Exchange ("TSXV") by virtue of having certain directors and officers in common. The closing of the proposed acquisition is subject to the approval of the TSXV.
About Pure Multi-Family REIT LP
Pure Multi is a Canadian based, publically traded vehicle which offers investors exclusive exposure to U.S. multi-family real estate assets. Pure Multi's units are USD denominated and allow investors the opportunity to buy into under-valued American hard 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) the acquisition is expected to close in late June, 2014; and (ii) Pure Multi intends to fund a portion of the purchase price of the Property with cash from Pure Multi's private placement financing which closed on May 21, 2014, and a new first mortgage financing. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by Pure Multi, including: expectations and assumptions concerning receipt of required regulatory approvals and the satisfaction of other conditions to the completion of the acquisition.
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 obtain necessary regulatory approvals or satisfy the conditions to closing the acquisition, 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 of new information, future events or otherwise, except as required under applicable securities regulations.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (as that term is defined in the policies of the TSX Venture Exchange) HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
Image with caption: "Walker Commons in Houston, Texas (CNW Group/Pure Multi-Family REIT LP)". Image available at: http://photos.newswire.ca/images/download/20140527_C7171_PHOTO_EN_40811.jpg
SOURCE: Pure Multi-Family REIT LP
For further information:
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