- CAPREIT will sell its mobile home portfolio, covering 12,138 lots across 75 sites, to TPG Real Estate for $740M.
- The sale proceeds will be used to repay CAPREIT debts, enhance liquidity, and fund future acquisitions.
- TPG plans to partner with CAPREIT’s team to manage and grow the mobile home portfolio.
Canada’s largest residential real estate investment trust, Canadian Apartment Properties REIT (CAPREIT), is set to sell its mobile home business to TPG Real Estate (TRTX) for $740M, as reported on CoStar.
Deal Details
CAPREIT’s manufactured home portfolio consists of 12,138 residential lots across 75 sites in Canada. The $740M purchase price includes a $140M interest-only vendor take-back loan at 3% per annum for a 5-year term, with the remaining $600M paid in cash.
CAPREIT intends to use the sale proceeds to repay $187M of outstanding debt on its revolving credit facility, as well as fund future acquisitions and other investment activities.
Julian Schonfeldt, CAPREIT’s chief investment officer, emphasized that the sale will strengthen the REIT’s balance sheet, enhance liquidity, and support a high-grading capital allocation strategy.
The transaction, expected to close in Q4, is subject to compliance with the Competition Act and other conditions.
Bigger Picture
CAPREIT, which owns over 45K residential apartments across Canada, has been actively selling older buildings and acquiring newer ones to modernize its multifamily portfolio.
TPG Real Estate, a longstanding investor in the Canadian real estate market, plans to collaborate with CAPREIT to manage and grow its new mobile home portfolio.
The sale aligns with CAPREIT’s broader strategy to focus solely on apartment properties. As of March 31, the REIT’s mobile home portfolio was valued at $708M, with a 95.9% occupancy rate and an average monthly rent of $447.
