InterRent REIT acquires 10% interest in 605 suites joint venture in Brampton for US$185.5 million
InterRent REIT, a Canadian real estate investment trust, announced Tuesday that it has acquired a 10 percent interest in a joint venture to acquire a new apartment complex in Brampton. The partnership with Crestpoint Real Estate Investments and Vestcor aims to enable the acquisition of a 605 suite apartment complex consisting of two buildings.
The development will be funded through a combination of cash and assumption of an existing $100 million mortgage on the property for a total of $185.5 million. The real estate firms said the acquisition allows InterRent to expand its presence in the Greater Toronto Area (GTA) and bring its unique resident experience to Brampton.
Brad Cutsey, President and CEO of InterRent, said in a statement, “Not only are we excited to offer our unique resident experience and contribute to the Brampton community, but this acquisition puts us in an excellent position to become a… potential new offering in a constrained market.”
Details of the apartment complex
The apartment complex consists of an 18-story high-rise building with 281 suites and a 22-story tower with 324 units. The site totals 10 acres and the Company plans a 350,000 square foot expansion that will be useful in Brampton due to rapid population growth.
InterRent will act as property manager in the rental development. The company also has the option to increase its stake to one-third within two years of the closing of the transaction.
Brampton: A fast growing market
Brampton is a city in the province of Ontario, Canada and has experienced rapid population growth in recent years. Between 2016 and 2021, the population grew by 10.6 percent, nearly double the provincial average of 5.8 percent. InterRent management said, “Brampton is well positioned to continue on this growth trajectory as it attracts a disproportionate share of Canada’s ambitious immigration destinations.”
InterRent’s presence in Canada
With this acquisition, InterRent now owns or manages more than 13,000 apartment suites in Ontario, Quebec and British Columbia. The Toronto-Hamilton region is the REIT’s largest market with more than 4,700 units.
“We’re very excited to expand our presence within the GTA,” said Cutsey. “We are proud to be doing our part to create affordable housing in Canada and will remain focused on our growth strategy.”
Conclusion
InterRent REIT, Crestpoint Real Estate Investments and Vestcor have formed a partnership to acquire a new 605 suite apartment complex in Brampton. InterRent acquired a 10% interest in the joint venture to expand its presence in the Greater Toronto Area and offer its unique resident experience in Brampton. The total purchase price is $185.5 million, funded through a combination of cash and assumption of an existing $100 million mortgage. The apartment complex consists of an 18-story high-rise building with 281 suites and a 22-story tower with 324 units on a 10-hectare site. InterRent has the option to increase its stake to one-third within two years of the closing of the transaction.
Brampton is a rapidly growing market with a population increase of 10.6 percent between 2016 and 2021. InterRent management believes that Brampton is well positioned to continue on this growth trajectory and will be useful with the addition of 350,000 square feet of the apartment complex.
InterRent REIT now owns or manages more than 13,000 apartment suites in Ontario, Quebec and British Columbia and will continue to pursue its growth strategy.
Those :
