Private equity investors such as Kuwait have attracted to buy a bout 100,000 apartment buildings compared with other real estate building in Canada. Its a latest deals in the apartment sector that is $182-million sale of Timbercreek Real Estate Investment Trust.
The type of real estate such as apartments have been holding their value through the recession at the time of other types of real estate is falling. This is also supported by the apartment owners who can access the new low-cost debt through the Canada Mortgage and Housing Corp. - to be able to refinance during the credit crisis, prevent a fire sale of another property owner at the time found in the debt markets completely closed.
Because this is an asset class that will certainly attract the attention of private investors around the world. All of the units in privately held Timbercreek were tendered to a partnership led by Regina-based asset manager Greystone Managed Investments Inc. which price a 15-per-cent premium to the REIT’s net asset value. They are about 5,112 units in 62 buildings in Manitoba, Ontario, Quebec and Nova Scotia. Timbercreek plans to continue manage the buildings.
Since last year most investors are more interested in the apartment sector and it has affects the consideration to sale because the board decided it would be increasingly difficult to achieve its goal of 8 per cent returns.
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