Northview Apartment Real Estate Investment Trust has agreed to acquire a portfolio of six apartment properties located in Ontario comprising a total of 644. Five of the properties are being acquired from independent vendors and one of the properties being acquired from affiliates of Starlight Group Property Holdings Inc.
The aggregate purchase price of the acquisition properties is $131.9 million (excluding closing costs), representing a weighted average capitalization rate of 4.2%.
“These transactions provide Northview with opportunities to generate significant income and net asset value growth driven by our high-end renovation program at five of the properties,” said Todd Cook, President and CEO of Northview.
He explained that “These acquisitions are consistent with Northview’s strategy of expanding its high-quality portfolio in strong and growing markets, further expands our presence in Ontario and increases future potential units eligible for our successful high-end renovation program.”
Cook continued, “These acquisitions complete the deployment of the equity raised in June as well as the redeployment of the proceeds from our non-core asset sale in the third quarter. We have completed $535 million of acquisitions over the last 12 months, of which a significant portion were through our strategic relationship with Starlight. We have been successful in generating value from our recent transactions, with over $17 million in net asset value created on last December’s transactions.”
Cook concluded, “We expect the pace of acquisition activity to moderate in 2019. This will allow us to focus on both delivering on the growth potential from our recently completed acquisitions and on our development program which will further enhance the quality of our portfolio. However, we will remain opportunistic should the right assets become available at the right price.”