CAPREIT (CAR-UN-T) has sold its land lease interest in the International Plaza apartment complex in North Vancouver to Nch’ḵay̓ Development Corp., for $54.2 million.

Nch’ḵay̓ is the economic development group of the B.C.-based Squamish Nation.

The divestment means CAPREIT has sold approximately $136 million in properties during the past three months as it continues to modernize and upgrade its apartment portfolio across Canada. CAPREIT had announced $82 million in property sales and $214 million in other acquisitions on Sept. 3.

“We’re honoured to take part in a transaction that transfers land back to the Squamish Nation, and contribute to their journey towards expanded economic leadership in the region and, in particular, the growth of First Nations representation in the residential real estate industry in Canada,” CAPREIT's president and CEO Mark Kenney said in the announcement.

“We hope to continue working with organizations such as Nch’ḵay̓, that will see to the preservation of high-quality living for residents, the continued enrichment of surrounding communities and the development of many more homes for Canadians.”

International Plaza was built in 1975 and contains 471 residential suites, plus 11 commercial units comprising over 65,000 square feet of gross leasable area. The property was sold unencumbered.

It is located along Marine Drive near the Capilano Road intersection. The distinctive, curved towers offer views of the city and mountains on one side and Vancouver Harbour, Stanley Park and the Lions Gate bridge on the other.

“We would like to extend our appreciation to the Canada Mortgage and Housing Corporation, and their establishment of constructive products such as the MLI Select Program, which make meaningful collaborations such as this possible,” Kenney said in the announcement. “We would also like to thank the Minister of Housing, Infrastructure and Communities for backing these important initiatives.

"We’re thrilled to have the opportunity to not only advance CAPREIT’s strategy and simplify its balance sheet, but also transfer our properties to the hands of respected counterparties like Nch’ḵay̓, who play a vital role in shaping and strengthening the future of housing in Canada.”

Nch’ḵay̓ leading development of Sen̓áḵw

Nch’ḵay̓ is leading the development of the Sen̓áḵw property in Vancouver's False Creek district, the country's largest-ever indigenous-led development project on a 10-acre plot of land. The first phase is under construction with three towers, ranging from 27 to 40 storeys, at various stages of completion. 

At full build-out, Sen̓áḵw is to have up to four million square feet of development, almost a dozen towers containing 6,000 housing units plus retail, commercial and other spaces. It is to offer 1,200 affordable housing units and to house up to 10,000 residents.

Nch’ḵay̓ is building the property with partner OPTrust, which increased its stake to 50 per cent in the property recently when former partner Westbank bowed out.

About CAPREIT

Toronto-based CAPREIT is Canada's largest publicly traded rental housing provider, with a portfolio of approximately 45,400 (excluding approximately 1,600 suites classified as assets held for sale) residential apartment suites and townhomes across Canada and the Netherlands as of June 30.

The properties comprise a total fair value of approximately $14.5 billion (excluding approximately $0.6 billion of assets held for sale).