Skyline Apartment REIT announced that it has sold $173M in multi-residential real estate assets to Toronto-based Q Management LP. The sale, which closed today, consisted of nine properties and 1,036 apartment units located primarily in the city of Hamilton.
Described as a “win-win transaction” for both vendor and purchaser, the sale will allow Q Management LP to establish itself in the city of Hamilton and capitalize on new opportunities in the market, while Skyline Apartment REIT will re-deploy the capital from the sale toward other accretive acquisitions and new-build properties in strong secondary and tertiary real estate markets where the Skyline Apartment REIT already has a solid presence.
“This multi-residential transaction was one of the largest in the country this year,” said Matthew Organ, President of Skyline Apartment Asset Management Inc. “Due to the great efforts of both the Skyline Team and the Q Residential Team, along with key partners Primecorp and TD, the process has been seamless.“
“This acquisition fits well with our strategy of assembling portfolios of high rise multi-family residential properties in larger Ontario urban centers that are well positioned for continued growth,” explained Dan Argiros, President and CEO of Q. “Our goal was to acquire a critical mass of properties in the Hamilton market and this portfolio achieves that. We view Hamilton as a stable market that is enjoying important growth and we are excited to be part of that.”
Q Management LP is also under contract to purchase 13 properties from Homestead for a total consideration of $129.7 million. The portfolio includes: 425 suites in four properties in Hamilton, and 558 suites in nine properties in London. The acquisition will bring Q’s Hamilton portfolio to 1,461 suites and will provide the opportunity to enter the London market with a significantly sized portfolio.