Ottawa’s InterRent REIT is adding to its footprint in the Greater Toronto Area, partnering with two other Canadian real estate firms to purchase a 605-suite apartment complex in Brampton for $185.5 million.
InterRent said Tuesday it acquired a 10 per cent stake in a joint venture with Toronto’s Crestpoint Real Estate Investments and New Brunswick-based Vestcor to buy the two-building development. The companies said the purchase will be funded by a combination of cash and assuming an existing $100-million mortgage on the property.
“We are extremely excited to expand our footprint within the GTA,” InterRent president and CEO Brad Cutsey said in a statement. “Not only are we looking forward to offering our unique resident experience and to help contribute to the Brampton community, but this acquisition also puts us in a great position to contribute to potential new supply in a constrained market.”
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InterRent has the option to increase its share of ownership to one-third within two years after the transaction closes. The Ottawa firm will act as property manager at the rental development, which consists of an 18-storey highrise with 281 suites and a 22-storey tower with 324 units.
The rental complex is located on 10 acres of land. InterRent said current zoning allows for an additional 350,000 square feet of development at the site.
The company said the extra room to expand will come in handy in Brampton, where the population grew 10.6 per cent between 2016 and 2021 – nearly double the provincial average of 5.8 per cent.
“Brampton is well-positioned to continue this growth trajectory as it attracts a disproportionate share of Canada’s ambitious immigration targets,” InterRent management said in a new release.
InterRent now owns or manages more than 13,000 apartment suites in Ontario, Quebec and British Columbia. The Toronto-Hamilton region is the REIT’s largest market, containing more than 4,700 units.