Boardwalk REIT has agreed to sell three Edmonton apartment properties for approximately $80 million as part of its capital-recycling initiatives.

The sale includes Lansdowne Park, Galbraith House, and Axxess, totalling 390 suites. The transaction is expected to close on January 21, Boardwalk said in a news release.

No details were provided on any buyers.

The sales price of $79.95 million, net of adjustments, equates to approximately $205,000 per suite and represents a capitalization rate of approximately 4.8%, based on net operating income for the 12 months ending September 30, 2024. The proceeds will be used to pay out existing mortgages of $21.6 million and to reinvest in Boardwalk’s high-quality portfolio through its Normal Course Issuer Bid (NCIB) program.

“This strategic disposition aligns with our goal to enhance value for stakeholders by recycling capital from select communities into opportunities that strengthen our portfolio,” said Sam Kolias, Calgary-based Boardwalk’s chairman and CEO.

“In the current environment, we can deploy proceeds on an accretive basis through our NCIB program, taking advantage of an attractive entry point relative to our net asset value per unit.”

Kolias highlighted the continued demand for affordable housing in Edmonton and across Canada, noting that the REIT’s properties have a strong 97.6% occupancy rate.

“Our resident-first approach and consistent reinvestment in our communities have positioned us to deliver exceptional outcomes,” he added. “Edmonton’s affordability, compared to the national market, remains a key driver of demand.”

Pictured: Lansdowne Park apartment complex in Edmonton.

Photo: Boardwalk REIT