Introducing CRE MBA—self-paced online courses taught by industry experts for CRE professionals.

CAPREIT Sells Mobile Home Business to TPG for $740M

Canadian Apartment Properties REIT agreed to sell its mobile home business to TPG Real Estate for $740M.
  • CAPREIT will sell its mobile home portfolio, covering 12,138 lots across 75 sites, to TPG Real Estate for $740M.
  • The sale proceeds will be used to repay CAPREIT debts, enhance liquidity, and fund future acquisitions.
  • TPG plans to partner with CAPREIT’s team to manage and grow the mobile home portfolio.
Key Takeaways

Canada’s largest residential real estate investment trust, Canadian Apartment Properties REIT (CAPREIT), is set to sell its mobile home business to TPG Real Estate (TRTX) for $740M, as reported on CoStar.

Deal Details

CAPREIT’s manufactured home portfolio consists of 12,138 residential lots across 75 sites in Canada. The $740M purchase price includes a $140M interest-only vendor take-back loan at 3% per annum for a 5-year term, with the remaining $600M paid in cash.

CAPREIT intends to use the sale proceeds to repay $187M of outstanding debt on its revolving credit facility, as well as fund future acquisitions and other investment activities.

Julian Schonfeldt, CAPREIT’s chief investment officer, emphasized that the sale will strengthen the REIT’s balance sheet, enhance liquidity, and support a high-grading capital allocation strategy.

The transaction, expected to close in Q4, is subject to compliance with the Competition Act and other conditions.

Bigger Picture

CAPREIT, which owns over 45K residential apartments across Canada, has been actively selling older buildings and acquiring newer ones to modernize its multifamily portfolio. 

TPG Real Estate, a longstanding investor in the Canadian real estate market, plans to collaborate with CAPREIT to manage and grow its new mobile home portfolio.

The sale aligns with CAPREIT’s broader strategy to focus solely on apartment properties. As of March 31, the REIT’s mobile home portfolio was valued at $708M, with a 95.9% occupancy rate and an average monthly rent of $447.

RECENT NEWSLETTERS
View All
Life Companies Lead Strong Comeback in CRE Lending for Q3
November 12, 2024
READ MORE
Multifamily Construction Starts Drop 50%, But Pipeline Remains Strong
November 11, 2024
READ MORE
Rising Double Defaults Test Banks’ Commercial Loan Stability
November 8, 2024
READ MORE
Blackstone Moves to Take ROIC Private in $4B Deal
November 7, 2024
READ MORE

podcast

No CAP by CRE Daily

No Cap by CRE Daily is a weekly podcast offering an unfiltered look into commercial real estate’s biggest trends and influential figures.

Join 65k+
  • operators
  • developers
  • brokers
  • owners
  • landlords
  • investors
  • lenders

who start their day with CRE Daily.

The latest news and trends in commercial real estate delivered to your inbox. Get smarter about what matters in just 5-minutes or less.