This news release constitutes a "designated news release" for the purposes of CAPREIT's prospectus supplement dated February 22, 2024, to its short form base shelf prospectus dated May 9, 2023. TORONTO, July 15, 2024 (GLOBE NEWSWIRE) -- Canadian Apartment Properties Real Estate Investment Trust ("CAPREIT") (TSX:CAR) announced today that it has entered into an agreement with an entity controlled by TPG Real Estate to sell its manufactured home community ("MHC") portfolio for a gross purchase price of $740.0 million (excluding transaction costs). The unencumbered MHC portfolio is comprised of 12,138 residential lots spread across 75 community sites located throughout Canada. The purchase price will be satisfied in part through an interest-only vendor take-back loan of $140.0 million, bearing interest at a rate of 3.0% per annum for a five-year term, with the remaining $600.0 million to be satisfied in cash. CAPREIT intends to utilize the net sale proceeds for: (1) the repayment of the balance outstanding on its Canadian revolving credit facility (approximately $187.0 million as of June 30, 2024); (2) future acquisitions of on-strategy rental properties in Canada; and (3) general business purposes, which may include capital expenditures, debt repayment and the repurchase of trust units under its normal course issuer bid. "We look forward to a smooth and successful transition with TPG Real Estate. TPG Real Estate has advised CAPREIT that, as a longstanding investor in the Canadian real estate sector, it intends to partner with the existing team to manage and grow the MHC portfolio going forward," said Mark Kenney, President and Chief Executive Officer of CAPREIT. "We intend to use the net proceeds from this strategic sale to strengthen our balance sheet, enhance our liquidity and further fuel our high-grading capital allocation strategy," added Julian Schonfeldt, Chief Investment Officer of CAPREIT. "This pivotal transaction is not only providing CAPREIT with a significant amount of capital, but it also increases management's focus as a pure play apartment REIT. ...