TORONTO, ONTARIO--(Marketwired - Sept. 30, 2015) - Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR.UN) announced today that it has completed the acquisition of the previously-announced apartment portfolio in central Montréal, Québec for a purchase price of $490 million, excluding transaction costs.

The portfolio comprises 16 properties consisting of 3,661 suites and approximately 194,000 square feet of ancillary commercial space in 51 buildings concentrated in three central Montréal multi-residential sub-markets: Montréal's downtown core; Cote-des-Neiges; and Notre-Dame-de-Grace. Over 95% of the suites are located within an 8km radius, and approximately half of the suites are located within a few blocks of each other in Montréal's downtown core and close to properties already in CAPREIT's Montréal portfolio. Average occupancy for the acquired properties stood at approximately 96% at closing.

The acquisition increases CAPREIT's total portfolio to 46,617 suites and sites and further strengthens and diversifies the total portfolio with approximately 17.7% of the total portfolio now in Greater Montréal. Approximately 80% of the portfolio is in the mid-tier and luxury category.

The purchase was funded by CAPREIT's Acquisition and Operating credit facility, which was amended to provide for a six month temporary bridge facility of up to $450 million (the "Bridge Increase") at a floating interest rate of approximately 2.8%. CAPREIT is in the process of committing new CMHC insured mortgage financing for the new Montréal properties for not less than $260 million, with a balanced allocation between 5 and 10 year mortgages. CAPREIT will use these new CMHC-insured financings to partially repay the Bridge Increase.

On September 21, 2015, CAPREIT agreed to sell, subject to regulatory approval, 8,720,000 units for $28.70 per unit for aggregate gross proceeds of $250 million to a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis (the "Offering"). CAPREIT has granted the underwriters an over-allotment option, exercisable in whole or in part up to 30 days after closing of the Offering, to purchase up to an additional 1,308,000 units to cover over-allotments, if any. CAPREIT intends to use the net proceeds of the Offering to partially repay the Bridge Increase, which was utilized by CAPREIT to partially fund the acquisition of the Montréal Portfolio. Closing of the Offering is expected on or about October 9, 2015.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the United States absent registration or pursuant to applicable exemption from registration.

"Our substantial and accretive portfolio growth has transformed CAPREIT into Canada's largest multi-residential landlord owning a strong, high-quality and diversified property portfolio from coast to coast in Canada," commented Thomas Schwartz, President and CEO. "So far this year we have added 5,189 apartment suites to our growing portfolio, well in excess of our annual growth target, and we are continuing to evaluate additional growth opportunities in our key markets. Importantly, all of these acquisitions will be immediately accretive to our normalized funds from operations, and we expect a growing contribution as we enhance the performance of our new properties through our proven asset and property management programs."

ABOUT CAPREIT

As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 46,617 residential units, comprising 40,332 residential suites and 30 manufactured home communities comprising 6,285 land lease sites located in and near major urban centres across Canada. For more information about CAPREIT, its business and its investment highlights, please refer to our website at www.caprent.com or www.capreit.net and our public disclosure, which can be found under our profile at www.sedar.com.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

All statements in this press release that do not relate to historical facts constitute forward-looking statements. These statements represent CAPREIT's intentions, plans, expectations and beliefs and are subject to certain risks and uncertainties that could result in actual results differing materially from these forward-looking statements. These risks and uncertainties are more fully described in regulatory filings that can be obtained on SEDAR at www.sedar.com.