Minto Apartment REIT has reached an agreement to sell an apartment complex in the city’s southeast end for $69 million as part of its plan to shed aging properties in Ottawa and Edmonton, the organization said Friday. In a news release, Minto said it is offloading its 241-suite Castleview property located at 1755 Frobisher Lane […]
Minto Apartment REIT has reached an agreement to sell an apartment complex in the city’s southeast end for $69 million as part of its plan to shed aging properties in Ottawa and Edmonton, the organization said Friday.
In a news release, Minto said it is offloading its 241-suite Castleview property located at 1755 Frobisher Lane to a private investor it declined to name. The transaction is expected to close in late January 2025.
The Ottawa-based REIT said the sale price is “at a premium” compared with the 51-year-old building’s fair market value. Minto said it will use the net proceeds from the deal, which it estimates at $33.8 million after mortgage and commission costs are deducted, to repay a portion of its variable-rate revolving credit facility.
Minto Apartment REIT president and CEO Jonathan Li said the sale will bring the total value of “older, non-core” assets the organization has recently disposed of in Edmonton and Ottawa to $200 million.
“These sales have increased the overall quality of our portfolio, reduced our future major capital expenditure requirements, strengthened our balance sheet and increased our financial flexibility,” Li said in a statement.
The announcement comes three days after Minto Apartment released third-quarter results that showed the average occupancy rate of its unfurnished suites rose to 97.1 per cent in the quarter ending Sept. 30, up from 96.9 per cent a year earlier.
The REIT’s funds from operations increased 9.6 per cent year-over-year to $17.2 million, while average monthly rents ticked up 7.2 per cent to $1,969.
Minto Apartment REIT owns and operates 28 multi-residential rental properties in Calgary, Toronto, Ottawa and Montreal. 
