CANADIAN APARTMENT PROPERTIES REAL ESTATE INVESTMENT TRUST ANNOUNCES CLOSING
OF $125.4 MM EQUITY FINANCING

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES/

TORONTO, Dec. 10 /CNW/ - Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN) ("CAPREIT") announced today that it has closed its previously announced issue and sale of 7,250,000 units for $17.30 per unit for aggregate gross proceeds of $125,425,000 through a syndicate of underwriters led by RBC Capital Markets on a bought-deal basis. Subscribers under this offering will be eligible to receive the December monthly distribution from CAPREIT, with a record date of December 31, 2010 and a payment date of January 17, 2011.

CAPREIT intends to use the net proceeds of the offering to repay a portion of the $178.7 million owing under its acquisition and operating facility as of September 30, 2010. Such facility was partially utilized by CAPREIT to fund eight acquisitions comprising CAPREIT's share of 1,667 residential suites completed since January 10, 2008 with aggregate acquisition costs of $235.8 million.

"We have financed all of our accretive growth and value enhancing capital investment programs with debt and internally generated funds since our last equity offering in October 2007," commented Thomas Schwartz, President and CEO. "With the proceeds from this offering, we have significantly strengthened our balance sheet and positioned ourselves to capitalize on a number of strategic acquisition opportunities we are currently evaluating, including the previously announced conditional agreements to purchase 1,300 suites in the Greater Vancouver Region and the Greater Montreal Area, on which our due diligence is continuing."

As one of Canada's largest residential landlords, CAPREIT is a growth-oriented investment trust owning interests in 27,172 residential suites and two manufactured home communities comprising 1,316 land lease sites located in and near major urban centres across Canada. Since its Initial Public Offering in May 1997, CAPREIT has grown monthly distributions per Unit by 51%. For more information about CAPREIT, its business and its investment highlights, please refer to our public disclosure which can be found under our profile at www.sedar.com.

All statements in this press release that do not relate to historical facts constitute forwardlooking statements. These statements represent CAPREIT's intentions, plans, expectations and beliefs and are subject to certain risks and uncertainties that could result in actual results differing materially from these forward-looking statements. These risks and uncertainties are more fully described in regulatory filings that can be obtained on SEDAR at www.sedar.com.

For further information:

CAPREIT Mr. Michael Stein Chairman [phone]

CAPREIT Mr. Thomas Schwartz President & CEO [phone]

CAPREIT Mr. Richard J. Smith Chief Financial Officer [phone]