— Sale price is at a premium to IFRS fair
value, highlighting the significant net asset value discount
implied by the unit price —
OTTAWA,
ON, Nov. 15, 2024 /CNW/ - Minto Apartment Real
Estate Investment Trust (the "REIT") (TSX: MI.UN) announced today
that it has entered into an agreement to sell its Castleview
property located in Ottawa,
Ontario to a private real estate investor (the
"Transaction"). The sale price of $69
million is at a premium to the REIT's IFRS value for the
asset. Upon closing, the proceeds of approximately $33.8 million, net of mortgages and commissions,
will be used to repay a portion of the REIT's variable-rate
revolving credit facility. Castleview was built in 1973 and
comprises 241 suites. The Transaction is anticipated to close in
late January 2025.
"In total, upon closing of the transaction, we will have
completed approximately $200 million
of older non-core asset sales located in the Edmonton and Ottawa markets. These sales have
increased the overall quality of our portfolio, reduced our future
major capital expenditure requirements, strengthened our balance
sheet and increased our financial flexibility." said Jonathan Li, President and Chief Executive
Officer of Minto Apartment REIT.
About Minto Apartment Real Estate Investment Trust
Minto Apartment Real Estate Investment Trust is an
unincorporated, open-ended real estate investment trust established
pursuant to a declaration of trust under the laws of the Province
of Ontario to own income-producing
multi-residential properties located in Canada. The REIT owns a portfolio of
high-quality multi-residential rental properties
located primarily in urban centers in Canada's major markets of Toronto, Montreal, Ottawa and Calgary. For more information on Minto
Apartment REIT, please visit the REIT's website
at www.mintoapartmentreit.com.
Forward-Looking Information
This news release may contain forward-looking information within
the meaning of applicable securities legislation, which reflects
the REIT's current expectations regarding future events and in some
cases can be identified by such terms as "will" and
"anticipated". In particular, this news release contains
forward-looking information in relation to: the Transaction; timing
for completion of the Transaction; and the use of the proceeds from
the Transaction. Forward-looking information reflects management's
current beliefs and is based on a number of assumptions that the
REIT believes are reasonable and is subject to a number of risks
and uncertainties, many of which are beyond the REIT's control that
could cause actual results and events to differ materially from
those that are disclosed in or implied by such forward-looking
information. Such risks and uncertainties include, but are not
limited to, the factors discussed under "Risks and Uncertainties"
in the REIT's Management Discussion & Analysis dated
November 12, 2024 which is available
on SEDAR+ (www.sedarplus.ca), as well as the ability of the REIT to
complete the Transaction. Certain information in this press
release may be considered as "financial outlook" within the meaning
of applicable securities legislation. The purpose of this
financial outlook is to provide readers with disclosure regarding
the REIT's reasonable expectations with respect to the
Transaction. Readers are cautioned that the financial outlook
may not be appropriate for other purposes. The REIT does not
undertake any obligation to update such forward-looking
information, whether as a result of new information, future events
or otherwise, except as expressly required by applicable law. This
forward-looking information speaks only as of the date of this news
release.
SOURCE Minto Apartment Real Estate Investment Trust
