InterRent REIT and Crestpoint Real Estate Investments Ltd. announced that they have entered into agreements to acquire a large Vancouver portfolio consisting of 15 properties for a purchase price of $292.5 million.
Under the arrangements, InterRent and Crestpoint will each own a 50 per cent interest in the portfolio. InterRent will oversee property management services at the buildings and collect industry standard fees. The acquisition will be financed with a combination of cash and new short-term debt of approximately $190.1 million.
“We are thrilled to enter the Vancouver market, with scale, through the acquisition of this institutional-quality portfolio that is extremely well-located,” said Mike McGahan, CEO of InterRent. “The Vancouver rental market continues to exhibit strong, sustainable market fundamentals, with exposure to a growing tech sector. We look forward to enhancing these properties with our best-in-class management platform, customer service and community-focused approach. This is a market we have targeted for a long time. We are very pleased to partner with a best-in-class team like Crestpoint for this portfolio.”
In addition to the expanding tech sector and its associated demand for multifamily housing in Vancouver, the Canadian government announced increases to the national immigration targets on October 30, 2020. These updated targets represent an increase of 50,000 additional permanent residents per year for 2021 and 2022. InterRent Management believes that Vancouver will continue to receive a disproportionately large share of immigrants moving to Canada.
The newly acquired Vancouver portfolio consists of 15 properties from six vendors, comprising a total of 614 residential suites. Nine of the properties are concrete mid-rise apartments and six are wood frame. The properties are in premium locations in the Metro Vancouver submarkets of the West End, Kitsilano/Point Grey, Marpole, and South Granville, offering superior walkability, access to transit, major employment, recreational amenities, universities, and downtown Vancouver (see map of properties on following page).
“The multifamily space has been an area of interest for Crestpoint and to enter this sector for the first time through a well diversified portfolio in one of the most sought after cities in the world is a tremendous opportunity,” added Kevin Leon, President and founder of Crestpoint. “There is a real benefit to combining forces with a highly reputable, experienced operator like InterRent, and the addition of these assets should provide long term benefits to Crestpoint’s growing portfolio while providing a springboard to accumulate numerous properties in the multifamily sector, across Canada.”