CAPREIT recently announced it has closed on the acquisition of three purpose-built rental properties in Montreal and Toronto, and has entered into a firm agreement to acquire a fourth Montreal property.
The three Montreal properties were constructed between 2016-2020 and are located within walking distance of each other in the popular Ville-Marie neighbourhood. CAPREIT closed on the acquisition of the first two buildings in November for $144 million, and the third property is expected to be acquired for $39.7 million.
The 8-storey, 61-suite rental building in Little Italy, Toronto, was constructed in 2021 and purchased by CAPREIT for $48 million. The well-located property is just steps from multiple streetcar lines and less than two kilometres from the future Ontario line.
“We’re pleased to be adding these four on-strategy, purpose-built rental apartment properties to our portfolio, recently constructed in two of our strongest performing Canadian markets,” commented Mark Kenney, President and Chief Executive Officer. “Including all closed transactions, our acquisition volume comes to approximately $670 million completed in 2024, the largest number of new builds we’ve purchased in a single year to date. Combined with our closed and upcoming divestments from non-core properties and other ancillary interests, as previously announced, total annual transaction activity will have reached approximately $3 billion by year end. All this to say, we’ve been extremely focused on the execution of our strategy, we’re proud of the progress being made and we’re looking forward to concluding this transformational year as a newer and better company.”
“We’re purchasing these high-quality, core-located concrete buildings, constructed by reputable, build-to-hold developers, at strong pricing per square foot that is meaningfully below replacement cost,” added Julian Schonfeldt, Chief Investment Officer. “In addition, we’ve been capitalizing on recent stock price performance and in November, pursuant to CAPREIT’s NCIB, we’ve repurchased $121 million worth of Units at a weighted average price of $45 per Unit. This represents an average discount to NAV of approximately 20%, based on CAPREIT’s reported NAV per Unit of $56 as of September 30, 2024. We’ll continue to actively source and take advantage of all opportunities available for CAPREIT to enhance earnings for its Unitholders, and we’re excited to maintain momentum on this mission as we head toward the new year.”
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