Milestone Apartments REIT Announces US$46 Million Property Acquisition

TORONTO, ON and DALLAS, TX, May 30, 2013 /CNW/ - Milestone Apartments REIT (TSX: MST.UN) ("Milestone" or the "REIT") today announced that it has entered into an agreement to purchase the Century Windermere, a 346-unit Class A multifamily apartment community located in the Alpharetta/Cumming submarket of Atlanta, Georgia, for a purchase price of US$46 million. The purchase price represents an initial capitalization rate of 6.36% and the transaction is expected to be immediately accretive to the REIT's forecasted AFFO per unit. The acquisition will increase the diversification of the REIT's portfolio, and increase the proportion of Milestone units in the Atlanta Metropolitan Statistical Area from 4.34% to 6.26%.  The acquisition is expected to close by June 30, 2013.

"Century Windermere is an attractive asset that complements our established portfolio of high-quality multifamily properties serving mid-market renters in the US Southeast and Southwest.  The property has a long-term trend of consistently high occupancy and steady rent growth," said Robert Landin, CEO of Milestone Apartments REIT. "We are seeing similarly attractive investment opportunities in a number of our target markets and remain focused on the continued advancement of our growth strategy through the acquisition of complementary assets that are accretive to the REIT's AFFO."

The Property
Century Windermere was built in 2001, features extensive amenities, consistent with the REIT's established portfolio, and is currently 95.5% occupied. The property benefits from its close proximity to several employment hubs, all of which have shown employment growth in recent years. In addition, Century Windermere is the only multifamily property located in the Windermere Planned Urban Development, an exclusive 1,400 acre master-planned luxury home and golf course community.

Acquisition Funding and Closing
As part of the purchase consideration, the REIT has negotiated an interest-only 10-year fixed-term mortgage of approximately US$25.3 million at an interest rate of 3.35% - 3.40%. The balance of the purchase price will be funded by drawing on the REIT's US$50 million revolving credit facility. The acquisition, which is subject to customary closing conditions, is expected to close by June 30, 2013.

About Milestone Apartments REIT
Milestone Apartments REIT is an unincorporated, open-ended real estate investment trust that is governed under the laws of Ontario. The REIT's portfolio consists of 52 multifamily garden-style residential properties, comprising 16,944 units that are located in 10 major metropolitan markets throughout the Southeast and Southwest United States. Milestone Apartments REIT is the largest REIT listed on the TSX focused solely on the U.S. multifamily sector. The REIT operates its portfolio through its internal property management company, Milestone Management, with more than 900 employees across the U.S. The Milestone Group, based in Dallas, Texas, is the external asset manager of the REIT. For more information, please visit www.milestonereit.com.

About The Milestone Group
The Milestone Group is a privately-held real estate investment management company with approximately US$2.5 billion of assets under management.  The firm has corporate offices in Dallas, TX and New York, NY with regional acquisition and management offices across the United States.  Founded in 2004, The Milestone Group has a strong track record of investing in the U.S. multifamily sector, including completion of more than US$4.5 billion in multifamily transactions. For more information, please visit www.milestonegp.com.

Forward-looking information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of the REIT and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the REIT's expectations, estimates, forecasts and projections. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. These risks and uncertainties are discussed in the REIT's prospectus dated February 27, 2013 available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The REIT undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances.

SOURCE: Milestone Apartments REIT

Robert P. Landin, CEO
Milestone Apartments REIT
Tel: [phone]

Bruce Wigle
Investor Relations
Tel: [phone], x 232