Boardwalk REIT has acquired a newly constructed Calgary apartment complex and is seeking to raise $150 million.

Calgary-based Boardwalk announced that it purchased the 295-unit Circle property in the Seton neighbourhood for $77.8 million. The REIT said it entered the conditional purchase agreement in May and has approximately $69.8 million to close the transaction.

The property, which is not encumbered by any debt, is located near two of Boardwalk’s existing communities, the Level and Auburn Landing, in the Seton area. The deal is expected to close in February.

Meanwhile, Boardwalk said it plans to raise the $150 million by issuing an additional 328,500 units at a price of $68.50 apiece. If an over-allotment option is executed, the gross proceeds could reach $172.5 million.

Boardwalk said it plans to use the capital to finance the purchase price for the Circle, repay its portion of a floating-rate construction credit facility on the 45 Railroad property in Brampton., Ont. and fund acquisition and development opportunities in its pipeline.