Minto pays $215 million for 5% of London Rental Market
Biggest Apartment Building Complex Sale in Canadian History
Big commercial real estate news from London, Ontario – Minto, in partnership with Healthcare of Ontario Pension Plan, has bought Cherryhill Village from Esam Construction for $215 million.
This is the largest single site multi-family transaction in Canadian History (there have been portfolio sales that were larger, but they were comprised of several apartment sites). With this purchase, Minto now owns approximately 5% of the 40,000 unit London rental market.
Cherryhill Village is comprised of 13 residential apartment buildings for a total of 2326 apartments, Cherryhill Mall (158,000 square feet) and a 31,000 sq ft office building. The residential tenants are almost all retirees, and the complex has very low tenant default rates & turnover.
Valuation
Neither ESAM or Minto are commenting on the cap rate valuation, but the sale price represents a value of $92,433 per residential suite, with the medical building, mall and excess land thrown in for free. Sounds good when you consider how rare it is to acquire a (mainly) multi-family property this size!
The Parties
The vendors, ESAM Construction, built the property in the 1960′s, and still has significant land holdings in London.
Minto is a family owned company based out of Ottawa, and owns over 14,000 units.
The deal was brokered by Derek Lobo of Rock Advisors Inc.
This is the second large transaction in the London, Ontario real estate market recently; last year Killam REIT spent $33 million to acquire a 137 unit property on Richmond Street. Killam also purchased two large apartment buildings in Cambridge for $46,710,000
This will be one of the largest Canadian commercial real estate transactions this year.
More:
London Free Press, $200M blockbuster deal marks end of era
London Free Press, Whopper of a deal: $215M
Ottawa Citizen, Minto buys huge London complex
Globe & Mail, Single-site apartment complex fetches record price
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