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SOURCE Milestone Apartments Real Estate Investment Trust
TORONTO, March 6, 2013 /CNW/ - Milestone Apartments Real Estate
Investment Trust (the "REIT") (TSX: MST.UN) announced today that it has completed its initial
public offering of 20,000,000 units at a price of $10.00 per unit (all
dollar amounts are in Canadian dollars, unless otherwise indicated).
The offering raised gross proceeds of $200 million and was underwritten
by a syndicate of underwriters co-led by BMO Capital Markets and CIBC.
BMO Capital Markets was the sole bookrunner on the transaction. The
units will begin trading on the Toronto Stock Exchange today under the
symbol "MST.UN".
The REIT has granted the underwriters an over-allotment option,
exercisable at any time up to 30 days following the closing, to
purchase up to an additional 3,000,000 units at a price of $10.00 per
unit which, if exercised in full, would increase the total gross
proceeds of the offering to $230 million.
The net proceeds of the Offering were used by the REIT to indirectly
acquire an interest in Milestone Multifamily Investors L.P. (the "Partnership") from MileSouth Apartment Portfolio LP ("MileSouth"), an affiliated entity of Invesco Ltd. The Partnership indirectly owns
and operates a portfolio of 52 multifamily properties in the United
States.
Following closing, MileSouth will hold 14,000,000 units of the REIT and
10,200,590 class B limited partnership units ("Class B Units") of the Partnership (each of which are redeemable for REIT units)
while MST Investors, LLC ("MST Investors"), an affiliate of The Milestone Group, LLC, will hold 5,513,675 Class
B Units, representing an approximate 48.7% and 11.1% retained interest
for MileSouth and MST Investors, respectively. TMG Partners, L.P., an
affiliate of The Milestone Group, LLC, is the external asset manager of
the REIT.
The REIT intends to make monthly cash distributions to its unitholders.
The first cash distribution, which will be for the period from the date
of closing of the offering to March 31, 2013, is expected to be paid on
or about April 15, 2013 to unitholders of record on March 31, 2013. The
amount of the first distribution will be $0.04543 per unit. The REIT
intends to make subsequent monthly distributions of $0.05417 per unit.
The units have not been, nor will they be, registered under the United
States Securities Act of 1933, as amended, and may not be offered, sold
or delivered, directly or indirectly, in the United States or to, or
for the account or benefit of, "U.S. persons" (as defined in Regulation
S under the United States Securities Act of 1933, as amended). This
press release does not constitute an offer to sell or a solicitation of
an offer to buy any of the units in the United States or to, or for the
account or benefit of, U.S. Persons.
About Milestone Apartments Real Estate Investment Trust
Milestone Apartments Real Estate Investment Trust is an unincorporated,
open-ended real estate investment trust established pursuant to a
declaration of trust under the laws of the Province of Ontario.
Concurrent with the completion of the offering and related
transactions, the REIT will acquire a portfolio of 52 multifamily
garden-style residential properties, comprising 16,944 units that are
located throughout the Southeast and Southwest United States.
The REIT's goals are to generate stable and growing cash distributions
to its unitholders while enhancing the value of its assets through
active management and expanding the REIT's asset base of multifamily
properties in the United States through accretive acquisitions.
About The Milestone Group
The Milestone Group is a privately held real estate investment
management company that acquires and manages multifamily real estate
assets in the United States on behalf of its clients. Founded in 2004,
The Milestone Group has completed nearly US$3.2 billion of multifamily
acquisitions and over US$1.3 billion of dispositions on behalf of
leading institutional investors globally, including a sovereign wealth
fund and a number of public and private pensions funds. The Milestone
Group currently acts as the asset manager for each of the properties
that will be acquired by the REIT in connection with the initial public
offering and will become the asset manager of the REIT thereafter.
Forward-Looking Statements
This press release may contain forward-looking statements which reflect
management's current expectations regarding future events, including
those relating to the offering. The forward-looking statements involve
risks and uncertainties. Actual results could differ materially from
those projected herein. The REIT disclaims any obligation to update
these forward-looking statements.
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