MISSISSAUGA, ON, Jan. 21, 2012 /CNW/ - TransGlobe Apartment Real Estate Investment Trust (TSX: TGA.UN) (the "REIT") provided clarification today on issues raised in a recently broadcast CBC Television Marketplace report.
The Marketplace report featured a number of properties referenced as "TransGlobe" properties. On September 1, 2011 the REIT took over the management of all of its property portfolio which was previously contracted to a separate privately-held entity, that also utilized the TransGlobe brand prior to that date. Only two of the properties featured in the Marketplace report are currently owned by the REIT. Due to the fact that the show was produced over an extended period of time, the buildings included in the Marketplace report that are not owned by the REIT were still bearing the "TransGlobe" brand, as the taping of certain segments pre-dated the date by which the non-REIT owned properties were rebranded with the new owner's name.
When the REIT became aware of the Marketplace report, it immediately contacted the show's producers to address any questions concerning its properties. "As we explained during the Marketplace interview, the REIT is focused on customer service and the long term sustainability of our properties," commented Mr. Kelly Hanczyk, the REIT's President and CEO. "We recognize that a number of our recently-acquired properties need investment and there has been more than $40 million spent on property capital improvements since our inception in May 2010. Our 2012 budget will continue to build on this substantial property investment."
"We are committed to listening to our residents and responding quickly and responsibly to their concerns," Mr. Hanczyk continued. "I can confirm that the REIT has not in the past nor currently been subject to any fines for non-compliance with City Orders in any of our markets, and while I cannot speak to the accuracy of the information mentioned on the program in respect of the non-REIT owned properties, I can state that none of the fines mentioned on the Marketplace report relate to REIT-owned properties."
Of the two REIT-owned properties discussed in the Marketplace report, the building located at 8 Rannock St. in Scarborough, Ontario, was acquired by the REIT on September 1, 2011 and, at that time, management immediately identified the need to address the roofing issues. This work was scheduled at the time of the filming by CBC Marketplace and was completed in December 2011, including the repair of roof related damaged suites in the building.
The second REIT-owned property featured in the Marketplace report is located at 60 Primrose St. in Dartmouth, Nova Scotia. The REIT acquired this property in May 2010 and, subsequent to taking ownership, began the full replacement of all balconies and patio doors in the summer of 2011. In addition to this property, seven other REIT-owned buildings within the same neighborhood have had the same upgrades completed.
"TransGlobe Apartment REIT is committed to providing quality accommodation to all of its residents and we will continue to invest the capital required to ensure that our buildings are maintained in a manner that provides a safe and secure environment. We are confident that our demonstrated actions will have a continued and positive impact on the lives of our residents, and that we will remain a landlord of choice for thousands of tenants across the country," Mr. Hanczyk concluded.
About TransGlobe Apartment Real Estate Investment Trust
TransGlobe Apartment Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT owns a growing portfolio of high quality apartment and town house properties well-located in urban centres in Alberta, Ontario, Québec, New Brunswick and Nova Scotia.
This press release contains forward-looking statements which reflect the REIT's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The REIT disclaims any obligation to update these forward-looking statements except as required by securities laws. For additional information about the REIT please visit www.tgareit.com
For further information:
TransGlobe Apartment REIT
Chief Executive Officer
(905) 293-9400 ext. 1970