Minto’s real estate investment trust has acquired a stake in a three-tower Toronto property from its sister company.
The Minto Apartment REIT announced Monday it has a conditional agreement to take a 40-per-cent interest in Toronto’s High Park Village apartment complex. The three-tower property includes 750 suites with rents averaging $1,745 per unit.
Under the terms of the $131.2-million deal, the apartment REIT will take over Minto Properties Inc.’s interest in the complex. Canada Pension Plan Investment Board will retain is 60-per-cent stake in the property.
The owners launched a repositioning program at High Park three years ago, with some 400 suites now left to be renovated. When complete, the REIT expects to see a return on its investment between eight per cent and 15 per cent.
Additionally, Minto Properties has an application at the Local Planning Appeal Tribunal that, if successful, would see additional intensification on the property.
In order to fund the purchase, Minto REIT will take on a mortgage term loan, issue partner units to its sister company and use its existing credit facility.
The acquisition, subject to regulatory and shareholder approval, is expected to close later in the quarter.