Calgary-based Urbco Inc. is purchasing 243 residential rental units in Yellowknife and Inuvik in the Northwest Territories and Iqaluit in the Nunavut Territory.
Urbco will pay the $34.1-million purchase price in the form of cash, vendor take-back and mortgage financing. The deals, subject to due diligence, are expected to close May 31.
The acquisition includes 81,641 square feet of commercial office space in Yellowknife and Iqaluit.
The 243 units consist of one-, two- and three-bedroom apartments and townhomes. The office space is in Yellowknife and Iqaluit and is leased to government.
“This is a strategic acquisition for us,” said Greg Herndier, Urbco’s vice-president, business development and acquisitions.
“The buildings we are acquiring increase our critical mass and efficiency in the Yellowknife and Iqaluit markets. The acquisition of a new apartment building in Inuvik is our first foray into a new northern market which we believe is exceptionally promising,” said Herndier.
Urbco (UBC-TSE) is the largest holder of rental properties in the N.W.T. and Nunavut. This acquisition expands Urbco’s portfolio to approximately 1,370 residential units and more than 300,000 square feet of commercial space.
The company says it plans to continue building its base of northern properties. “We are great believers in the northern real estate story,” said Jim Britton, president and CEO of Urbco.