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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.
Key Highlights
- The purchase was based on a value of $27,000,000 for the 112 units, representing a
value per unit of approximately $241,000.
- Parties related to the asset manager of the REIT received, in
satisfaction of their portion of the purchase price, through the
issuance of Class B limited partnership units ("Exchangeable
Units") of the wholly owned subsidiary MAR REIT L.P. (the
"Partnership") units at a deemed value of $1.15, which is a significant premium to the
current trading price.
- The REIT was able to target, negotiate, and close on a property
within approximately three months of its equity raise, showing the
value of the pipeline of assets controlled by the Marwest Group of
Companies.
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