Minto Apartment REIT enters Victoria, BC market with funding for University Heights redevelopment

REITs to be provided $51.7 million convertible development loan to finance Minto Properties’ interest in joint venture redevelopment

OTTAWA, March 24, 2022 /CNW/ – Minto Apartment Real Estate Investment Trust (“the REIT”) (TSX: MI.UN) announced today that it has entered into an agreement to provide a convertible loan for the development of $51.7 million (the “Financing”) to Minto Properties Inc. (“MPI”) to finance 80% of MPI’s 45% interest in a joint venture (“JV”) with subsidiaries of Greystar Real Estate Partners (“Greystar”) and one of the from Canada largest institutional investment managers. Today, the JV has acquired the University Heights shopping center located in Saanich, British Columbia in the Greater Victoria area (“University Heights” or the “Property”) with the intention of redeveloping part of the 11.5 acre site. MPI and the institutional investment manager each hold a 45% stake in the joint venture, while Greystar holds a 10% stake and will act as development manager. The Funding consists of a $40.5 million direct installation and a $11.2 million interest reserve.

The building is currently occupied by a 119,000 square foot shopping center and a 76,000 square foot Home Depot store. The joint venture will redevelop the mall into a multi-residential and commercial mixed-use building, with five six-story wood-frame buildings comprising 593 rental units over 113,485 square feet of grocery-anchored retail. The property is on a long-term lease with Home Depot, which will expand its store by approximately 9,200 square feet and add a new garden center and seasonal outdoor space of approximately 20,000 square feet.

University Heights is located in an attractive location in by Saanich Shelbourne Valley district located less than 1.4 kilometers from the University of Victoria (22,000 enrolled students and 5,350 employees) and less than 2.8 kilometers from Camosun College’s downtown campus (20,400 enrolled students and 1,200 employees across two campuses in Greater Victoria area). There is good access to public transit and the property is surrounded by attractive amenities including parks, beaches and a library. University Heights has a walk score of 77 and a bike score of 88. There is significant demand for student rental housing in the area, with little purpose-built rental supply and a historically low vacancy rate. Two of the property’s five buildings will specifically target students with smaller furnished suites and student-oriented amenities.

“Our first investment in the Greater Victoria area represents an important strategic step for the REIT,” said Michael Waters, CEO of the REIT. “It offers geographic diversification and exposure to a strong rental market. Victoria The rental market is characterized by low vacancy rates and is supported by strong population and employment growth. University Heights is located near two post-secondary institutions. We view this attractive investment as a building block for continued growth in the region.”

The Financing will bear interest at the rate of 7% per annum, which will accrue and be payable in full at the maturity of the loan. The REIT intends to fund the financing with existing cash on hand and draws on its revolving credit facility. The Financing has full financial recourse to MPI and is secured, among other things, by a mortgage on the property. Funding will be contingent on the main construction and land funding.

Development permit approval is expected in the spring of 2022 and construction is expected to begin in late 2022 or early 2023 with stabilization expected in 2026. After stabilization, the REIT will have the option to purchase the interest of 45% MPI in University Heights at a rate of 5%. returned to its fair market value then appraised.

MPI is a related party to the REIT. Accordingly, the terms of the financing were reviewed, reviewed and approved by a committee of independent trustees of the REIT.

About Minto Apartment Real Estate Investment Trust

Minto Apartment Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a Declaration of Trust under the laws of the Province of Ontario own, develop and operate income-generating multi-residential properties located in the urban markets of Canada. The REIT owns a portfolio of high quality multi-residential income-producing rental properties located in TorontoMontreal, Ottawa, Calgary and Edmonton. For more information about the Minto Apartment REIT, please visit the REIT’s website at:

About Greystar

Greystar is a global rental housing leader with expertise in real estate sectors across multiple geographies. The company’s business model is unique in its ability to own, operate and develop college, multi-family, corporate and senior housing across the world. Greystar has 64 offices and more than 22,000 employees operating in 215 global markets. Greystone’s business services include development and construction, property management and investment management and it has over $49 billion in assets under management. For more information about Greystar, please visit its website at

Forward-looking information

This press release may contain forward-looking information within the meaning of applicable securities laws, which reflects the REIT’s current expectations regarding future events and, in some cases, may be identified by terms such as “will” and ” planned”. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT’s control and could cause actual results and events to differ materially from those disclosed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the consummation of the transactions contemplated in this press release as anticipated, and the factors discussed under “Risks and Uncertainties” in the REIT’s most recent MD&A, available on SEDAR ( The REIT undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this press release.

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