Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) has expanded its multi-family portfolio in the Netherlands with a $239.83-million acquisition.
The purchase is comprised of 18 high-quality residential rental properties totaling 942 suites in seven urban growth markets in the European country of 17 million people.
Approximately 91 per cent of the properties have been built since 1970. Occupancy in the portfolio is approximately 98 per cent.
The purchase was financed by CAPREIT’s (CAR-UN-T) Euro Acquisition and Operating Facility.
CAPREIT’s reasoning for acquisition
“We continue building scale in the robust Netherlands multi-residential market,” said CAPREIT president and chief executive officer Mark Kenney in a statement announcing the acquisition.
“The Netherlands residential rental market remains highly fragmented, with strong demand for rental accommodation driven by an acute housing shortage, high population growth, and strong macro-economic fundamentals.
“Consistent with our previous growth strategy for European Residential Real Estate Investment Trust (ERES), CAPREIT intends to make this portfolio available to ERES to execute on its growth plans when ERES is in a position to acquire it.”
ERES is Canada’s first European-focused multi-residential REIT.
Before this latest acquisition, the CAPREIT-owned CANLiving property management firm managed 3,966 residential apartment suites and townhomes in 84 properties in the Netherlands.
They’re located across the country in major cities such as Amsterdam, The Hague and Utrecht, as well as smaller centres including Cuijk, Enschede, Gouda, Heerenveen, Huizen, Ijsselstein, Koog aan de Zaan, Meppel, Oldenzaal, Scherpenzeel and Warnsveld.
While CAPREIT is based in Toronto and its major focus is on Canada, with properties in seven provinces, the Netherlands isn’t the only European country in which it’s active.
CAPREIT’s Irish and Canadian activity
Irish Residential Properties REIT plc, formerly known as CAPREIT Ireland Limited, was launched by CAPREIT in April 2014. It purchases and accumulates apartments to rent in the greater Dublin area and is traded on the Euronext Dublin stock exchange.
CAPREIT manages 61,189 residential units, comprised of 49,512 residential suites and 72 manufactured home communities with 11,677 land lease sites located in and near major urban centres across Canada, The Netherlands and Ireland.
CAPREIT trades on the Toronto Stock Exchange and has a market cap of $7.87 billion.
CAPREIT will announce its financial results for the three and six months ended June 30 on Aug. 13.