Canadian Apartment Properties Real Estate Investment Trust (“CAPREIT”) announced it has completed the acquisition of a portfolio of seven apartment buildings comprised of 548 residential suites in London, Ontario, and six apartment buildings comprised of 335 residential suites in Victoria, B.C.
“We continue to grow our value-add residential portfolio with these accretive acquisitions. Both portfolios are in strong and stable suburban markets, offering residents quality suites with more space, at affordable rental rates, characteristics that are in high demand today,” commented Mark Kenney, President and CEO. “These acquisitions are in-line with our successful asset allocation strategy of acquiring mid-tier properties, where we can add significant value through our proven property management and investment initiatives.”
CAPREIT paid approximately $214.5 million for the thirteen properties, funded by CAPREIT’s Acquisition and Operating Facility and the assumption of approximately $8.4 million in mortgages with a blended interest rate of 1.33 per cent.
The London Portfolio contains a mix of unit sizes ranging from studios to three bedrooms. All the buildings are well-located, close to downtown London with transportation links, shopping, restaurants, universities, schools, and parks in the vicinity. All have undergone exterior, common area and suite upgrades in the past five years. Management believes there is a significant opportunity to improve the London portfolio’s environmental footprint by decreasing utility consumption through water fixture retrofits and the modernization of heating boilers. Additionally, on turnover, suites can be self-metered for hydro.
The Victoria Portfolio also includes a mix of unit sizes, with suite features including large open-concept kitchens, new stainless-steel appliances, upgraded cabinetry and bathrooms. All the buildings are close to transportation links, shopping, restaurants, schools, and parks, and have undergone recent exterior and common area renovations.