TSE, ASE, ME SYMBOL: BEI
SEPTEMBER 8, 1999
Boardwalk Completes New Mortgage Financings Totaling
$119.5 Million
CALGARY, ALBERTA--Boardwalk Equities Inc. ("BEI" - TSE, ME, ASE)
is pleased to announce the finalization of new mortgage financings
of 32 projects totaling $119.5 million. The individual mortgages
carry a blended interest rate of 6.15 percent with a weighted
average term of 6.57 years. All but four of the mortgages are CMHC
insured. A portion of the new financings involved replacing
existing mortgage debt of $44.2 million, which had a blended rate
of 6.91 percent, with $54.3 million of new mortgage debt on
renovated buildings with a blended rate of 5.85 percent.
This approach is consistent with management's objectives of
replacing existing short term, higher rate debt with long term,
lower rate debt. This round of financing also exemplifies
Boardwalk's conservative strategy of mitigating interest rate risk
by locking in attractive spreads, between achieved capitalization
rates and current mortgage rates, for a lengthy duration. Despite
the recent fluctuation in interest rates, the vast majority of
Boardwalk's portfolio, having long term debt in place at a blended
overall rate of 6.33 percent (May 31, 1999) is not impacted.
Interest coverage ratios on existing and newly financed properties
are to be maintained in the 2 to 1 range.
Boardwalk Equities Inc. is a customer oriented, technologically
advanced real estate company specializing in the acquisition and
management of multi-family residential projects throughout Canada.
Boardwalk owns or has contracted to acquire over 24,000 units
representing over 20 million net rentable square feet.
Fax back information service is also available at (403) 531-9321.
Information can also be found on the Internet at
http://www.bwalk.com
"to efficiently provide the best value in carefree living at
competitive prices and utmost customer satisfaction"
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Boardwalk Equities Inc.
Sam Kolias
President
(403) 531-9255
(403) 531-9321 Fax back information
http://www.bwalk.com
or
Boardwalk Equities Inc.
George Reti
Executive Vice-President
(403) 531-9255
or
Boardwalk Equities Inc.
Massimo Geremia
Investor Relations
(403) 531-9255
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