(MENAFN - GlobeNewsWire - Nasdaq) itemprop="articleBody">CALGARY, Alberta, June06, 2019(GLOBE NEWSWIRE) -- Northview Apartment Real Estate Investment Trust (NVU.UN – TSX) ('Northview') today announced it has closed its previously announced public offering, on a bought deal basis, of trust units ('Trust Units') with a syndicate of underwriters (the 'Underwriters') co-led by CIBC Capital Markets and Scotiabank (the 'Offering').
An aggregate of 3,220,000 Trust Units were issued by Northview at a price of $26.80 per Trust Unit, including 420,000 Trust Units issued on the full exercise of the Underwriters' over-allotment option, for aggregate gross proceeds of $86.3 million.The first cash distribution which purchasers of Trust Units under the Offering will be entitled to receive will be for the month of June 2019, with an expected record date of June 28, 2019 and an expected payment date of July 15, 2019. Northview's current monthly cash distribution is $0.1358 per Trust Unit.
On June 3, 2019, Northview closed the acquisition of a newly built three-building apartment complex comprising 161 suites in Guelph, Ontario (the 'Guelph Property'). The Guelph Property was acquired from an affiliate of Starlight Group Property Holdings Inc. ('Starlight') for a purchase price of $52.7 million (excluding closing costs), representing a capitalization rate of approximately 4.4%. Northview intends to use a portion of the net proceeds from the Offering to partially repay its credit facilities, which were drawn on, in part, to fund the Guelph Property acquisition previously announced on May 16, 2019. Northview intends to use the remaining net proceeds from the Offering to repay a portion of its credit facilities that were previously used to internally fund growth. Northview's increased borrowing capacity will support current and future developments, acquisitions, and working capital requirements.
Todd Cook, President and CEO, commented, 'We are excited to complete the recently announced acquisition in Ontario which continues to support our strategy of adding high-quality assets to our portfolio in strong and growing markets.'
CAUTIONARY AND FORWARD-LOOKING STATEMENTS
This media release contains forward-looking statements including, but not limited to, statements relating to the intended use of proceeds of the Offering and the payment of Northview's June 2019 cash distributions. These statements are not guarantees of future events, performance or results and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved.
Forward-looking statements are based on information available at the time they are made, underlying estimates and assumptions made by management and management's good faith belief with respect to future events, performance and results, and are subject to inherent risks and uncertainties surrounding future expectations generally, which could cause actual results to differ materially from what is currently expected. Such risks and uncertainties include, but are not limited to, risks related to: real property ownership; availability of cash flow and mortgage financing; demand for rental accommodation and commercial space; natural resource prices; development and construction risks; reliance on key personnel; concentration of tenants; capital requirements; interest rate risk; credit risk; liquidity risk; general uninsured losses; government regulation; environmental risk; utility costs; potential conflicts of interest; integration of acquired properties; income tax related risk factors; and other risk factors more particularly described in Northview's most recent Annual Information Form and MD & A, both of which are available on SEDAR atwww.sedar.com . Additional risks and uncertainties not presently known to Northview or that Northview currently believes to be less significant may also adversely affect Northview.
Readers are cautioned that the above list of factors is not exhaustive and that should certain risks or uncertainties materialize, or should underlying estimates or assumptions prove incorrect, actual events, performance and results may vary significantly from those expected. There can be no assurance that the actual results, performance, events or activities anticipated by Northview will be realized or, even if substantially realized, that they will have the expected consequences to, or effect on, Northview. Readers, therefore, should not place undue importance on forward-looking information. Further, these forward-looking statements speak only as of the date of this media release. Northview disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
Northview is one of Canada's largest publicly traded multi-family REITs with a portfolio of approximately 27,000 residential suites and 1.2 million square feet of commercial space in more than 60 markets across eight provinces and two territories. Northview's well-diversified portfolio includes markets characterized by expanding populations and growing economies, which provides Northview the means to deliver stable and growing profitability and distributions to Unitholders of Northview over time. Northview currently trades on the TSX under the ticker symbol: NVU.UN. Additional information concerning Northview is available atwww.sedar.com orwww.northviewreit.com .
Northview Apartment Real Estate Investment Trust
Mr. Todd Cook
President and Chief Executive Officer
Mr. Travis Beatty
Chief Financial Officer
Mr. Leslie Veiner
Chief Operating Officer