Timbercreek REIT sold to private equity investors
From Globe Investor
Private equity investors have snapped up one of the largest blocks of privately owned apartment buildings in Canada after its owners decided not to test the public market’s appetite for another real estateoffering.
The $182-million sale of Timbercreek Real Estate Investment Trust is the latest in a string of deals in the apartment sector, a traditionally quiet segment of the commercial real estate market where returns are steady and predictable, but cash yields are thin.
Apartment buildings – there are about 100,000 in Canada – have attracted interest from buyers from as far away as Kuwait, largely because they held their value through the recession at a time when other types of real estate, such as office buildings and shopping centres, saw prices drop. More