InterRent Real Estate Investment Trust has bought a property in Hamilton, Ontario for a combined purchase price of CAD24,095,500.
The property is located in the east end of Hamilton and includes a combination of garden homes (119 three-bedroom homes) and a high rise apartment building (215 suites).
The property is situated in a predominantly residential area, surrounded by green space, parks and schools. The Go Station as well as the Red Hill Valley Parkway (which feeds into the Queen Elizabeth Way) are within close proximity.
The property is being purchased with a going in capitalisation rate of 5.2 per cent and is immediately accretive to the REIT.
The acquisition will be financed through a conventional first mortgage while the property is being re-positioned. The acquisition is expected to close on or before 31 July 2014.
"With our experience in the Hamilton market and the team we have assembled in this region, we believe that this acquisition is in a good geographical location and is a strong addition to the REIT's portfolio. We believe that our repositioning strategy with this property will be able to create value for our unitholders," says Mike McGahan, chief executive of InterRent.