CAPREIT sells $104 million property in shocking non-core move

In Canada, on December 16, 2024, Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) announced the potential sale of an off-strategy portfolio containing 717 residential suites located in Montréal, Québec. The estimated sale price for this portfolio is approximately $103.8 million, which includes the repayment of $27.2 million in total mortgage debt before transaction costs and standard adjustments. The closing of this sale is expected to occur in the first quarter of 2025, contingent upon receiving regulatory approvals and fulfilling specific closing conditions. The City's intention to exercise its pre-emptive right over the property indicates its commitment to addressing the affordable housing crisis in the region. Mark Kenney, President and CEO of CAPREIT, expressed pride in facilitating the transfer of these properties to the city, underlining their shared goal of promoting accessible housing solutions. This strategic move by CAPREIT aligns with the company's broader initiative to divest from non-core buildings and contribute to high-quality affordable housing for Canadian residents. As of September 30, 2024, CAPREIT manages approximately 63,400 residential apartment suites, townhomes, and manufactured home community sites across Canada and the Netherlands, totaling a fair value of around $16.9 billion. The organization has committed to ensuring that these 717 suites will remain affordable for future residents, thereby supporting the local government's initiative focused on long-term housing solutions. The collaboration between CAPREIT and the City of Montréal highlights the corporate sector's role in alleviating housing shortages and enhancing community welfare. Despite the promising outlook, CAPREIT acknowledges the uncertainties inherent in such dispositions, particularly relating to closing requirements. Forward-looking statements indicate ongoing evaluations of the anticipated timelines and market responses associated with this significant transaction. The sale of the off-strategy portfolio is seen as a crucial step for CAPREIT in redirecting its resources toward its core operations while simultaneously contributing to social needs in the region.