TPG Real Estate is acquiring Canadian Apartment Properties Real Estate Investment Trust’s (CAPREIT) manufactured home community (MHC) portfolio for C$740m (€496m).
TSX-listed CAPREIT said it has agreed to sell its 12,000-lot Canada portfolio across 75 sites to a TPG Real Estate-controlled entity for $600m cash plus a $140m seller-held loan.
CAPREIT said the sale proceeds will be used to pay off its remaining Canadian debt, acquire further rental properties in Canada and for general corporate purposes.
Mark Kenney, CAPREIT’s president and CEO, said: “We look forward to a smooth and successful transition with TPG Real Estate. TPG Real Estate has advised CAPREIT that, as a longstanding investor in the Canadian real estate sector, it intends to partner with the existing team to manage and grow the MHC portfolio going forward.”
Julian Schonfeldt, CIO of CAPREIT, said: “We intend to use the net proceeds from this strategic sale to strengthen our balance sheet, enhance our liquidity and further fuel our high-grading capital allocation strategy.
“This pivotal transaction is not only providing CAPREIT with a significant amount of capital, but it also increases management’s focus as a pure play apartment REIT. We’re excited to be simplifying our story and dedicating our resources to our core business, where our competitive advantages are strongest.”
CAPREIT is Canada’s largest publicly traded provider of rental housing. As of 31 March, the company held 64,200 residential apartment suites, townhomes and manufactured home community sites well-located across Canada and the Netherlands, with approximately C$16.7bn of investment properties in Canada and Europe.
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