- What Avenue Living announced it completed an offering for $250m in Series A unsecured notes
- Why The funds raised will be used to refinance existing debt
- What next The company also plans to use the funds to help further expansion into the U.S.
A $250m offering of Series A unsecured notes by Avenue Living is part of the company’s strategy to further expand in the U.S., Green Street News can reveal.
Last week, the Calgary-based company announced it had completed an offering of the notes, with a maturity date of May 12, 2030, with institutional investors being one of the key stakeholders.
Jason Jogia, co-founder and chief investment officer of Avenue, said although some of the proceeds will be used to refinance existing debt, they also will be used to help the firm further expand south of the border.
“Right now, we’re sitting at about an 85%-15% split between Canada and the U.S.,” he said. “I think on our horizon, if we think about our goals in the next year or two, we’d like to see a 75%-25% split.”
Avenue has about $7.4bn of assets under management across more than 50 markets in Canada and the U.S. Jogia said Avenue looks for defensible markets as well as markets with a diversified population and positive inbound migratory flows over time. The company is focused on workforce housing for people making between $15 and $50/hour – part of the reason Avenue is eyeing further expansion in the U.S.
There, renting has been a “celebrated” way of living, which has translated into quality assets, Jogia said.
“When you buy assets in the U.S., they tend to be very well serviced to the customer at an affordable price,” he said. “We try to bring that experience into the assets we own here in Canada.”
The company’s multifamily assets comprise more than 19,000 units in the U.S. and Canada. Avenue also oversees 50,000 acres of farmland and 9.3m sq ft of self-storage space.
RBC Capital markets led the offering of notes on a private placement basis across Canada.
