CAPREIT’s MHC Portfolio Sells for $740M
TPG Real Estate purchased the properties.
Canadian Apartment Properties Real Estate Investment Trust has sold its manufactured housing portfolio across Canada to a division of TPG Real Estate for $740 million.
With 74 communities throughout eight provinces and totaling 12,000 homesites, the sale is among the largest manufactured housing deals in the country.
Colliers Manufactured Housing and RV Group’s National Director & Vice Chairman Michael Nissley served as lead strategic advisor on behalf of the seller, together with Colliers Capital Markets Canada. Previously, Nissley also brokered two other large MHC transactions in Canada, including the $790 million sale of the 85-community Parkbridge portfolio and the $200 million sale of the 4,000-site Keystone portfolio.
Nissley and his colleagues in the MHC group worked alongside Bruce Nell, senior vice president of Colliers’ Advisory Services & Global Leader of MHC Valuations Group, in assisting CAPREIT, with Colliers’ Canadian Capital Markets team also aiding in this deal.
A closer look at a strategic sale
Nell told Multi-Housing News that TPG’s purchase is not only one of the investments of its kind in Canada’s history, but it also shows the dire need to preserve affordable housing options during challenging times. “By securing these communities for long-term stability, TPG is showing that it’s possible to balance strong investment with a commitment to affordable, sustainable housing solutions for all Canadian families,” he said.
CAPREIT first announced this strategic sale in July. Back then, the REIT disclosed that it intends to use the net sale proceedings to repay an approximately $187 million loan and to further purchase rental properties in Canada, among other general business purposes.
The acquisition was possible through a $140 million interest-only vendor take-back loan bearing interest at a rate of 3 percent per year for a five-year term. The remaining $600 million was paid in cash.
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Meanwhile, TPG Real Estate disclosed that it intends to partner with the existing CAPREIT team to manage and also grow the manufactured housing portfolio, according to a prepared satement from CAPREIT President & CEO Mark Kenney.
This year hasn’t been short of large portfolio deals in the U.S., either. Most recently, QuadReal Property Group purchased eight MHCs for $330 million, and earlier this year Crow Holdings Fund acquired a 46-property portfolio that includes 9,838 homesites spread across properties Ohio, Missouri, Illinois, Indiana, Montana and Florida.
