CAPREIT has waived conditions and agreed to purchase a portfolio of two properties in southwestern Ontario for a purchase price of $50 million. Aggregated occupancy in the Sarnia and London properties currently stands at 98.3 per cent with only five vacant suites in the portfolio. Closing is expected on or before September 21, 2020.
“These acquisitions expand our presence in the strong southwestern Ontario markets of London and Sarnia,” commented Mark Kenney, President and CEO. “We look to achieve solid returns on investment as operating synergies and economies of scale are realized through the increase in the size of this region’s portfolio.”
The London property is a six-storey apartment building located in Southwest London containing a mix of 107 bachelor, one- and two-bedroom suites. Located within a short walk of the Thames River, the property is close to a shopping mall, public gardens and other amenities, as well as local transport and access to major thoroughfares.
The Sarnia property consists of a ten-storey apartment building, a three-storey apartment building and 60 townhomes totaling 194 residential suites, as well as one commercial unit. The property is located in a pleasant low-density residential neighbourhood close to schools, parks, public transit and highways. Amenities include park-like landscaped grounds and a seasonal swimming pool.
CAPREIT is one of Canada’s largest real estate investment trusts. CAPREIT owns approximately 56,700 suites and sites, including townhomes and manufactured housing sites, in Canada and indirectly through its investment in ERES, approximately 5,600 suites in the Netherlands. CAPREIT manages approximately 60,800 of its owned suites in Canada and Netherlands, and additionally, approximately 3,800 suites in Ireland.