CAPREIT plans to utilize the proceeds to repay the balance on its Canadian revolving credit facility, fund future acquisitions of on-strategy rental properties in Canada, and cover general business purposes, including capital expenditures, debt repayment, and repurchasing trust units.
Strategic Move for 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,” said Julian Schonfeldt, chief information officer for 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.”
Regulatory Compliance and Closing Timeline
The deal is subject to compliance with the Canadian Competition Act and other customary closing conditions, with an expected closure in the fourth quarter of the year.
A representative for TPG did not immediately return a request for comment, and legal counsel information for the parties was not immediately available on Monday.
