- What Capreit has agreed to sell its manufactured-homes portfolio for $740m
- Why TPG Real Estate is looking to acquire the assets
- What next The deal is expected to close in Q4
Canadian Apartment Properties Real Estate Investment Trust has struck an agreement to sell its manufactured-home community portfolio to TPG Real Estate for $740m.
The purchase, comprising 75 properties with 12,138 residential lots, will be partially financed via a $140m vendor take-back loan with an annual interest rate of 3% and a five-year term. TPG will pay the remaining $600m in cash.
The portfolio spans from British Columbia to Nova Scotia, with many sites at full capacity with a waiting list.
Capreit plans to use some of the sale proceeds to repay an $187m outstanding balance on its Canadian revolving credit line, while the rest will go toward general business purposes and future rental-property acquisitions in Canada.
“We’re looking coast to coast, focusing on high-quality, well-located new construction apartments in VECTOM markets, but also attractive markets outside of that too, like Victoria, London and Halifax,” Julian Schonfeldt, chief investment officer at Capreit, told Green Street News.
The sale will allow Capreit, Canada’s largest publicly traded landlord, to sharpen its focus on being “a pure play apartment REIT.”
The deal is expected to close in the fourth quarter of 2024, subject to undisclosed closing conditions.
TPG is a global alternative asset manager. Its real estate arm, established in 2009, has $18bn in assets under management with portfolios across the U.S. and Europe.