Centurion Apartment REIT Announces Pending Acquisition of 634 Unit Student Housing Portfolio in London Ontario
Centurion Apartment REIT is pleased to announce the pending acquisition of a purpose built 634 unit student residence portfolio in two separate sites serving Western University (a.k.a. the University of Western Ontario) in London in a joint venture. The acquisition price is $29.1 million and is expected to close on or about 27 February 2012. The acquisition will be financed by a combination of cash, operating facilities and new long term mortgages. Centurion will be taking a 75% stake in the properties, with the balance taken up by its partners.
The properties are located in a prime student rental area with easy access to transportation. Restaurants, bars and services are available only a short walk away. The residential addresses are 75 Ann Street and 1 Beaufort Street. The 75 Ann Street location, contains many premium ameneties such as fitness & weight training rooms, theatre, games room, lounges, study and private meeting rooms, extensive CCTV coverage, underground parking, and onsite concierge and management which are expected to attract students looking for premium accommodations.
This acquisition represents Centurions first acquisition of purpose built student residences in Ontario and its second and third acquisition of purpose built student residences. Upon completion of this acquisition, the REIT will have interests in 1,074 student rental units in three properties serving two universities. It is currently exploring other opportunities in the purpose built student residence market and believes that there will be more significantly accretive opportunities for the REIT available.
Update: The propertes were acquired and the transaction closed on schedule as of 27 February 2012.