Minto Apartment REIT has sold two properties to Ottawa Community Housing Corp. for $86 million as the company continues to raise money to pay down its debt.
The two properties, Tanglewood and Chesterton/Bowhill, are both located in the Nepean area.
Built in 1975, Tanglewood consists of 122 low-rise, wood-framed single-family rental homes on eight acres of land. It sold for $32.2 million.
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The Chesterton/Bowhill property was constructed in 1969 and includes 189 low-rise, wood-framed single-family rental homes on 12 acres of land. The sale price was $53.8 million.
Minto said Tuesday the transaction will result in net proceeds of $69 million, which will be used to repay a portion of the REIT’s variable-rate revolving credit facility.
ARRIV Properties, the banner for OCH’s affordable housing rentals, will take over management of both properties.
“We are pleased to be playing a role in addressing the affordable housing issue in Canada by conveying these assets to OCH, who can maintain their affordability indefinitely,” Minto Apartment REIT chief executive Jonathan Li said in a statement.
“This is truly a win-win transaction that helps alleviate some of the housing affordability challenges facing our country.”
Last month, the REIT announced it had sold its last two remaining properties in Edmonton for more than $30 million as part of its bid to recycle aging assets and reduce its mortgage debt.
