FOR IMMEDIATE RELEASE
NOT FOR DISTRIBUTION IN THE U.S. OR OVER U.S. NEWSWIRES TRUE NORTH APARTMENT REIT ANNOUNCES PROPOSED
Toronto, ON (August 9, 2012) – True North Apartment Real Estate Investment Trust (the “REIT”) (TSXV: TN.UN) announced today that it has agreed to acquire, through its subsidiary entity True North Limited Partnership, a residential complex comprised of 220 residential suites in three concrete mid-rise and low-rise buildings, and a townhouse complex built in 1980 – 81 on Trossacks Avenue in London, Ontario for a purchase price of $17.5 million (the “Acquisition”) which implies a capitalization rate of approximately 6.2%.
Daniel Drimmer, the Chief Executive Officer of the REIT commented “We are very pleased to find such a quality property for sale on an off-market basis. The acquisition will provide our unitholders with stable and growing cash flows from a property that has historically demonstrated strong occupancy. The opportunity reflects Starlight’s track record of sourcing opportunities through its ongoing industry relationships and affiliates.”
The purchase price for the Acquisition will be satisfied by a portion of the proceeds raised in the REIT’s July 2012 public offering, an $11.0 million mortgage and a $500,000 vendor take back mortgage. The Acquisition is expected to close on or about August 21, 2012 and is subject to customary closing conditions and approval from the TSX Venture Exchange.
About the REIT
The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. Additional information concerning the REIT may be obtained from the management information circular dated May 4, 2012 of Wand Capital Corporation and is available at www.sedar.com.
The REIT focuses on a long-term strategy to generate stable cash distributions on a tax-efficient basis for unitholders. The REIT intends to actively look for opportunities to expand its asset base and increase its distributable cash flow through acquisitions of additional multi-suite residential rental properties across Canada, the United States and other jurisdictions where opportunities may arise.
Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking statements are provided for the purposes of assisting the reader in understanding the REIT’s financial position and results of operations as at and for the periods ended on certain dates and to present information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information may relate to the REIT’s future outlook and anticipated events and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the REIT, including the ability of the REIT to complete the acquisition on the estimated closing date indicated herein or at all. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the REIT or the real estate industry are forward-looking statements. In some cases, forward-looking information can be identified by such terms as “may”, “might”, “will”, “could”, “should”, “would”, “occur”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “seek”, “aim”, “estimate”, “target”, “project”, “predict”, “forecast”, “potential”, “continue”, “likely”, “schedule”, or the negative thereof or other similar expressions concerning matters that are not historical facts. Forward-looking statements necessarily involve known and unknown risks and uncertainties, that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the REIT’s control, affect the operations, performance and results of the REIT and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the risks discussed in the REIT’s materials filed with Canadian securities regulatory authorities from time to time. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements as there can be no assurance that actual results will be consistent with such forward-looking statements.
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.
For further information, please contact:
President and Chief Executive Officer
Chief Financial Officer and Secretary