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WINNIPEG, MB, Nov. 15, 2021 /CNW/ - Marwest Apartment Real Estate Investment Trust (the "REIT") (TSXV: MAR.UN) is pleased to announce that it has closed its previously announced acquisition of 112 new-generation units over two adjacent multi-family residential properties located in Winnipeg, Manitoba.
The acquisition was made by the Partnership through the purchase of all of the issued and outstanding limited partnership units of Marwest (Element) Apartments L.P. ("Element LP") for an aggregate purchase price of $2,367,194.35.
The Partnership paid an aggregate purchase price of $2,367,194 for the Element LP, representing the value of $27,000,000 less $24,632,806, representing the current outstanding debt of the Element LP on closing. $1,183,597, representing one-half of the purchase price, was satisfied through the issuance of an aggregate of 1,029,211 Exchangeable Units of the Partnership, each of which was accompanied by a Special Voting Unit of the REIT, at a deemed value of $1.15 per Exchangeable Unit, with the balance of the purchase price satisfied in cash. Immediately following closing, Element LP repaid $1,200,000 of outstanding loans owed to the vendors or affiliates.
The Exchangeable Units were issued at a significant premium to the current unit price of the REIT. All of the Exchangeable Units were issued to parties related to Marwest Asset Management Inc. ("the Asset Manager"), showing the Asset Manager's support of the REIT and their belief that the unit price is undervalued.
The REIT is pleased to have been able to target, negotiate, and close a property of this quality within approximately three months of its equity raise, showing the value of the pipeline of assets controlled by the Marwest Group of Companies, and showing the strong alliance between the REIT and the Marwest Group.
For further particulars, see the REIT's management information circular dated October 11, 2021.
About Marwest Apartment REIT
The REIT is an unincorporated open-ended trust governed by the laws of the Province of Manitoba. The REIT was formed to provide Unitholders with the opportunity to invest in the Canadian multifamily rental sector through the ownership of high-quality income-producing properties, with an initial focus on stable markets throughout Western Canada.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE Marwest Apartment Real Estate Investment Trust
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