The Cunard Apartments along Brunswick Street in Halifax are part of a 1,503-apartment portfolio being acquired by CAPREIT. (Courtesy Quadreal)

CAPREIT (CAR-UN-T) has doubled its presence in Halifax in one major transaction, announcing an agreement to acquire 1,503 apartment units in eight properties for $391 million.

The buildings are located in several areas of the Halifax metro area, but the majority of the portfolio is concentrated along Brunswick Street, where CAPREIT is acquiring five properties with about 800 units.

“With this purchase, we will significantly increase the size and scale of our Halifax portfolio, capturing strong economies of scale and operating synergies across our asset base in the city,” said Mark Kenney, CAPREIT’s president and CEO, in a release issued Wednesday morning. “Once completed, our Halifax portfolio will grow to over 3,100 residential suites, transforming CAPREIT into one of the city’s premier providers of quality rental accommodation.”

Occupancy for the portfolio currently stands at 99.9 per cent, the CAPREIT says.

To finance the purchase, CAPREIT is assuming $109.1 million in mortgages with a weighted average interest rate of 1.94 per cent and a weighted average term to maturity of 1.25 years. The balance will be paid in cash from its acquisition and operating credit facility.

The portfolio was being operated by Vancouver-based QuadReal, and represented all of its properties in Halifax, according to the QuadReal website.

About the properties

The portfolio includes buildings in the downtown, Brunswick Heights, Clayton Park and Halifax Commons areas of the city. Among the properties is StoneCrest Village in Clayton Park, with more than 300 apartments in three-storey low-rise style buildings. The complex features an on-site fitness facility and private patios and balconies.

The properties have been well-maintained and all are close to key amenities such as the Halifax waterfront, the city’s Central Business District, schools, universities, public transport, shopping, walking trails, entertainment and other attractions.

A number of the properties also contain retail components focused on serving the needs of the residents and local communities.

CAPREIT has waived conditions on the acquisitions, and is awaiting regulatory approvals for the transaction. Closing is expected by the end of January 2020.

The properties are:

CAPREIT in 2019

The acquisitions are the latest in a record year for CAPREIT, which has spent more than 1.2 billion acquiring properties across Canada and in the Netherlands during 2019.

CAPREIT has acquired more than 2,150 suites in apartments in Canada and 1,768 in the Netherlands, as well as 5,183 manufactured home community sites in Canada. 

During the year, the trust has raised more than $1 billion in equity from investors to fund a significant portion of those acquisitions.

About CAPREIT

CAPREIT is a growth-oriented investment trust managing 64,028 suites and sites across Canada, the Netherlands and Ireland.

It owns interests directly in Canada and indirectly in the Netherlands, through its investment in ERES, a total of 60,362 residential units, comprising 48,687 residential suites and 72 manufactured home communities comprising 11,675 sites, all located in and near major urban centres.