- What Capreit purchased four apartment buildings last month for a combined $278.7m
- Why The REIT is continuing to implement its strategy of boosting portfolio quality
- What next Capreit will offload a 138-unit building in Toronto this month
Canadian Apartment Properties Real Estate Investment Trust purchased four apartment properties in July for a combined $278.7m.
Two of the properties are in Ottawa. The REIT paid $21m for the 54-unit Hillview, at 525-555 Recolte Private. The building was completed last year. Capreit assumed the $15.9m mortgage, with a 4.4% annual interest rate and a remaining term of four-and-a-half years.
It bought the 144-unit Nuovo for $78.5m. The 20-storey tower, built in 2019, is at 518 Rochester Street. Capreit assumed the $10.4m mortgage, with two-and-a-half years left in the term on a 2.1% annual interest rate.
The two other properties are in the Vancouver region. For $137m, Capreit purchased the 173-unit Pendrell. The 21-storey building, built in 2019, is near the waterfront in downtown Vancouver. Capreit assumed the $64.1m mortgage, which carries a 3.1% annual interest on an eight-year term.
In North Vancouver, Capreit bought the 64-unit Axir, at 2590 Lonsdale Avenue, for $42.2m. The property was built last year and is leased up. It’s unencumbered by debt.
The acquisitions follow two major purchases made in June: a 68-unit rental property in Halifax for $29.4m and a 178-unit apartment building in Edmonton for $79.3m, as previously reported by Green Street News.
Capreit also offloaded a handful of properties in recent months to local not-for-profit organizations. In May, the company sold a 79-unit apartment building in Burnaby, B.C., for $33m, and in June, it sold a 44-unit property in Maple Ridge, B.C., for $18.5m.
Capreit has also entered into an agreement to sell a 138-unit building in Toronto for $37.8m, with closing expected by Aug. 7.
Capreit chief executive Mark Kenney noted that the weighted average capitalization rate of the recent acquisitions exceeds that of Capreit’s dispositions, which are being sold “at prices that are at or above their previously reported IFRS fair values.”
“We’re also proud to be participating in the preservation of affordable housing in Canada by transferring more of our regulated properties into the hands of non-profit organizations, that can maintain the affordability of these older homes for substantially less than the cost of building new,” Kenney said.
Capreit made another major change to its portfolio last month, agreeing to sell 75 manufactured home properties with 12,138 residential lots to TPG Real Estate for $740m. The purchase, expected to close in Q4, will be partially financed with a $140m vendor take-back loan with an annual interest rate of 3% and a five-year term.
