- What Capreit announced the sale of a residential portfolio in Montréal and the closing of other transactions
- Why The company continues to hone its portfolio
- What next Capreit plans to use proceeds from the sales and the distribution to repay debt and to fund acquisitions in Canada
The City of Montréal plans to buy a 717-suite portfolio of residential rental properties from Canadian Apartment Properties REIT for $103.8m.
The REIT said the sale is expected to close in the first quarter and will result in $27.2m of mortgage debt being repaid.
“We’re proud to be passing along these properties to the City of Montréal’s affordable housing initiative, and we’re looking forward to collaborating on this important sale,” said Capreit president and CEO Mark Kenney.
Capreit also said that is has completed part of the sale of its manufactured-home community portfolio, selling 11,605 residential lots for $715m. The purchase price was satisfied in part through a $140m interest-only vendor take-back loan that bears interest at an annual rate of 3.0% five years, with $575.0 million satisfied in cash. TPG Real Estate is the buyer.
The sale of the remaining 533 lots is expected to be completed in Q1 for $25m, to be satisfied in cash.
Finally, subsidiaries of European Residential REIT completed the sale of 3,179 residential units in the Netherlands for $1.1bn. Eres declared a special cash distributed of $1.49 per unit and class B limited partnership unit.
Capreit expects to receive $227m from the distribution, which will be paid on Dec. 31 to holders of record as of Dec. 23.
The firm will use proceeds from the sales and the distribution to repay debt and to fund acquisitions in Canada, among other things.
