Minto Apartment REIT announced it has acquired interest in two residential properties located in Toronto and Calgary. In downtown Toronto, the REIT will soon own a 28.35 per cent managing interest in the newly-built “Niagara West”,  a two-tower property comprising 501 apartment suites and 52,600 square feet of at-grade retail. The purchase price for the property is reported as being of $114.5 million.

The remaining 71.65 per cent interest in Niagara West will be acquired by the third party Canadian institutional investment manager and majority owner of the vendor. Upon closing of the acquisition, the REIT will earn property and asset management fees to manage its co-owner’s interest in the property.

The second property, “The International” in downtown Calgary, was constructed in 1970 as an apartment building but later operated as a hotel. It was then acquired in 2015 and converted to luxury apartments with substantial infrastructure upgrades, common area and amenity improvements, as well as the full renovation of all 247 suites. The building has a commercial component comprising roughly 2,700 square feet.

“This is a unique opportunity to acquire institutional-quality assets in highly desirable downtown markets,” said Michael Waters, Chief Executive Officer at Minto Apartment REIT.  “These acquisitions increase our scale to 8,277 suites, reduce the average age of the portfolio by 2.6 years, increase our exposure to Toronto to 33 per cent and improve operating efficiencies in the management of our Calgary portfolio. The acquisitions also underline the value of our relationship with the Minto Group, through which we were able to acquire these premier assets in off-market transactions.”

Subject to approval by the TSX and satisfaction of all customary closing conditions, the REIT expects to close the Niagara West acquisition on or about April 22, and the International acquisition on or about May 6, 2022.

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