The transaction is expected to close during Q3 2021
Firm Capital Property Trust has announced the acquisition of a 50% interest in a manufactured housing community in McGregor, Ontario.
The company acquired 242 units (241 residential and one commercial) of Hidden Creek Condominium for an estimated $10.7 million, aside from transaction costs.
The trust’s $5.4 million portion of the acquisition price will be funded through its credit facilities. The property will also be partly financed by a new $7.7 million, 2.65% mortgage with an unnamed Canadian chartered bank.
“Closing of the property is expected to occur during the third quarter of 2021 and will be immediately accretive to AFFO,” Firm Capital said.
Read more: Firm Capital Property Trust announces strong start to 2021
Situated on approximately 66 acres of land in close proximity to major amenities and larger cities, the property features a recreational centre with a pool and basketball court, visitor’s parking, a playground, below-ground electrical infrastructure, and city services for water, electricity, and gas.
“The trust will enter into joint venture arrangement with SunPark Communities, LP, such that the trust will own 50% of the Property and SunPark the remaining 50%,” Firm Capital stated. “SunPark is partially affiliated with members of the board and senior management of the trust. This co-investment is consistent with the trust’s objective of being aligned with strong real estate industry partners.”
