/NOT FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, May 7 /CNW/ - TransGlobe Apartment REIT (the "REIT") announced today that it has filed, and obtained a receipt for, a final prospectus respecting its initial public offering of approximately 24.7 million trust units with the securities commissions of all provinces and territories in Canada. The trust units will be issued at a price of $10.00 per unit and will provide investors with a cash-on-cash yield of 7.5% annually, to be paid through monthly distributions. Gross proceeds of the offering are expected to be approximately $247.3 million.
The REIT has granted to the underwriters of the offering an option to purchase up to approximately an additional 2.47 million trust units at a price of $10.00 per unit for a period of 30 days after closing of the offering and, if exercised in full, will increase the total gross proceeds of the offering to approximately $272.0 million.
The offering is being underwritten by a syndicate of underwriters led by CIBC and including RBC Capital Markets, TD Securities Inc., BMO Nesbitt Burns Inc., Citigroup Global Markets Canada Inc., Canaccord Financial Ltd., Scotia Capital Inc., National Bank Financial Inc. and Dundee Securities Corporation.
The Toronto Stock Exchange (the "TSX") has conditionally approved the listing of the trust units under the symbol "TGA.UN", subject to fulfilling all of the requirements of the TSX.
The offering is expected to close on May 14, 2010.
The first distribution, for the period from closing to June 30, 2010 will be paid on or about July 15, 2010 and, assuming a closing date of May 14, 2010, will be in the amount of $0.099 per trust unit. The REIT intends to make subsequent monthly cash distributions in the amount of $0.0625 per trust unit commencing on or about August 16, 2010 for the month of July 2010. Copies of the final prospectus will be available on the website www.sedar.com.
These securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of that Act. This news release does not constitute an offer for sale of these securities in the United States of America.
About TransGlobe Apartment REIT
TransGlobe Apartment REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT has been formed to indirectly acquire, conditional on closing of the initial public offering, 65 residential rental properties containing approximately 8,200 suites principally located in urban centres in Alberta, Ontario, Québec, New Brunswick and Nova Scotia that are currently owned or co-owned and operated by affiliates of TransGlobe Investment Management Ltd. ("TGIM"). TGIM and an affiliate will administer and operate the assets of the REIT following closing in order to support the REIT's external management structure.
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.
SOURCE TRANSGLOBE APARTMENT REIT
For further information: For further information: Kelly Hanczyk, Chief Executive Officer, TransGlobe Apartment REIT, (416) 234-8444