InterRent Real Estate Investment Trust, a Canadian real estate investment trust and together with Crestpoint Real Estate Investments have entered into agreements to acquire a property portfolio in Metro Vancouver for $292.5 million.
The portfolio consists of 15 properties, from 6 vendors, comprising of 614 residential suites. Nine of the properties are concrete mid-rise apartments and six of the properties are wood frame apartments. The properties are in premium locations in the Metro Vancouver submarkets of the West End, Kitsilano/Point Grey, Marpole, and South Granville.
The properties are situated in core locations within prominent neighborhoods offering superior walkability, access to transit, major employment, recreational amenities, universities, and downtown Vancouver (see map of properties on following page).
Under the arrangements, InterRent and Crestpoint will each own a 50% interest in the Acquisition Portfolio. InterRent will property manage the portfolio and collect industry standard fees.
InterRent said the acquisition will be financed with a combination of cash and new short term debt of approximately $190.1 million. The acquisition is expected to close on January 28, 2021.
”The Vancouver rental market continues to exhibit strong, sustainable market fundamentals, with exposure to a growing tech sector.”
“We are thrilled to enter the Vancouver market, with scale, through the acquisition of this institutional-quality portfolio that is extremely well-located. 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” said Mike McGahan, CEO of InterRent.
“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. 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” said Kevin Leon, President and founder of Crestpoint.