Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) announced Monday that it has agreed to sell its manufactured-home community (MHC) portfolio to TPG Real Estate, the real estate platform of private equity giant TPG, for $740 million.
CAPREIT Sells MHC Portfolio for $740M : Extensive Portfolio in Deal
The portfolio being sold to TPG Real Estate comprises over 12,100 residential lots spread across 75 community sites throughout Canada, according to CAPREIT’s announcement.
CAPREIT, touted as Canada’s largest publicly traded provider of rental housing, owns about 64,200 residential apartment units, townhomes, and manufactured-home community sites across Canada and the Netherlands as of March 31.
CAPREIT Sells MHC Portfolio for $740M : Background of TPG Real Estate
Founded in 2009, TPG Real Estate operates as the real estate arm of TPG, boasting $18 billion in assets under management, according to the firm’s website.
“We look forward to a smooth and successful transition with TPG Real Estate. TPG Real Estate has advised CAPREIT that, as a longstanding investor in the Canadian real estate sector, it intends to partner with the existing team to manage and grow the MHC portfolio going forward,” CAPREIT President and CEO Mark Kenney stated.
Financial Structure of the Deal
The deal will be financed partly through an interest-only vendor take-back loan of $140 million, with the remaining $600 million paid in cash, as noted in the statement.
