Boardwalk REIT finalized disposal of Imperial Tower for C$28.75M

Boardwalk REIT finalized disposal of Imperial Tower for C$28.75M

Boardwalk Real Estate Investment Trust (REIT), listed on the Toronto Stock Exchange under the symbol BEI.UN, has finalized the sale of its Imperial Tower community in Edmonton for a gross sales price of C$28.75 million, excluding transaction costs and closing adjustments. The sale of the 138-suite property is anticipated to close in August.

The sale price of C$28.75 million represents an approximate premium of C$208,000 per suite compared to the property's Q1 2025 IFRS value. The existing mortgage balance stands at approximately C$10.7 million with an interest rate of 4.49%.

The proceeds from the sale will be used to acquire a three-community portfolio in Saskatchewan, known as North Prairie Townhomes, totaling 235 newer townhomes in Saskatoon and Regina. The aggregate purchase price for this portfolio is C$71.1 million, equating to approximately C$303,000 per suite and a going-in cap rate of 5.2%. The acquisition includes assuming C$19.1 million in conventional mortgages with an in-place interest rate of 2.35%.

The three communities—Bravo and Kingspoint in Saskatoon, and Parkplace in Regina—were completed between 2019 and 2022 and offer modern, spacious units with various unit types. These communities are well-located near existing Boardwalk communities, providing operational efficiencies and expanding the REIT's presence in the strong rental markets of Saskatoon and Regina.

Chairman and Chief Executive Officer, Sam Kolias, commented on the transaction, highlighting the Trust's strategy of capital upcycling and its commitment to creating value for unitholders through accretive upcycling of proceeds from dispositions into newer communities. The REIT's focus on maintaining a strong balance sheet and its disciplined approach to capital allocation allows it to pursue attractive acquisition opportunities while ensuring flexibility for future growth.

Boardwalk REIT's second quarter financial results, for the period ended June 30, 2025, are scheduled to be released after markets close on July 29, 2025. A teleconference and webcast to discuss the results will be held on July 30, 2025, at 11:00 am (Mountain) and 1:00 pm (Eastern) respectively.

References:
[1] https://www.prnewswire.com/news-releases/boardwalk-reit-provides-operational-update-reports-advancement-of-capital-upcycling-initiatives-and-announces-timing-of-second-quarter-results-302498544.html