Minto Apartment REIT has completed the sale of two properties to the Ottawa Community Housing Corporation for $86 million.

The two properties, known as Tanglewood and Chesterton/Bowhill, are located near each other in the Nepean area of Ottawa and comprise 311 suites.

“The successful completion of this accretive sale strengthens the REIT’s balance sheet and provides increased flexibility with respect to the REIT’s refinancing, operating and investment strategies.” said Jonathan Li, Minto’s president and CEO.

Tanglewood and Chesterton/Bowhill were sold unconditionally for $32.million and $53.8 million respectively, the parties announced in January.

Minto said it generated $68 million in net proceeds from the sale after mortgage repayments and distribution costs. The proceeds will be used to repay a portion of the variable-rate debt under the REIT’s revolving credit facility, said Minto in a news release.

Photo: Minto Apartment REIT

(Connect CRE will award its inaugural Canadian Top Broker Awards this year. The deadline has been extended to February 22. Connect will recognize brokers for their sale and lease deals. Nominate a candidate today.)