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Skyline Apartment REIT Completes Largest Multi-Family Sale in Oshawa’s Recent History

Posted On August 15, 2012

110 Park Road North, Oshawa, ON. One of four properties successfully sold by Skyline Apartment REIT.

August 14, 2012 – Late last week, Skyline Apartment REIT successfully sold four multi-residential properties in the city of Oshawa (Ontario) from its existing portfolio.   This was a highly strategic and beneficial move for the REIT as the transaction was also marked as the largest multi-family sale (cost per door) in the city’s recent history.   The sale was made up of four multi-residential properties that comprised 316 apartment suites. 

The IFRS value of the properties according to Skyline Apartment REIT’s 2011 audited financials was just over $34.8 million and with a final sale price of $39.3 million, the transaction worked out to nearly $125,000 per door. 

“The net proceeds from this transaction, an amount well above the properties’ anticipated IFRS value, will enable the REIT to purchase new income-producing properties in other markets where we exist and where we feel we can get a bigger bang for our buck.  This transaction truly validates the REIT’s value-enhancing strategy”, said Jason Castellan, CEO and Co-Founder of Skyline Apartment REIT and the Skyline Group of Companies

This transaction will ultimately allow the REIT to further maximize its internal sources of funds and increase its overall revenue stream without requiring new investor equity to do so.  

Similarly to purchasing the right properties at the right time, Skyline Asset Management’s business model also considers each property within the existing portfolio to ensure that opportunities to sell a single or group of properties are evaluated on an individual basis.   In the end, selling the right building at the right time can be just as accretive to the REIT. 

“We always look to take advantage of cyclical pricing changes in our markets by selling where we believe pricing has become overheated and buying where we believe we are still achieving solid value for investors”, said Mike Bonneveld, Director of Acquisitions for Skyline Asset Management Inc.

Post-sale, the Skyline Apartment REIT portfolio is now made up of 101 properties, 7,441 multi-residential units and over 750,000 square feet of commercial space spread out across 40 communities in 4 provinces. Skyline Asset Management’s Acquisitions Team has several properties currently at various stages of the due diligence process.  Stay tuned for more Skyline Apartment REIT news and acquisitions.

If you have any additional questions about this transaction, please do not hesitate to contact the Skyline Wealth Management Investor Relations department directly at 1.888.977.REIT(7348) or via email here.

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