Urbanfund Corp. has entered into a conditional purchase agreement with an arm’s length party for the acquisition of 10 per cent of an 1,870 unit multi-family residential portfolio located in Quebec City and Montreal.

The total purchase price for the 10 per cent purchase is approximately $7 million prior to customary adjustments. Most of the properties included in the transaction have existing mortgages at competitive market rates. Of the 1,870 units, 312 are located in Montreal, with the remainder in Quebec City.

The transaction is conditional on Urbanfund completing due diligence to its satisfaction, securing the approval of the current lenders and satisfying any regulatory requirements. Closing is expected to happen in late February 2013.