TPG Capital, L.P. entered into an agreement to acquire Manufactured home community portfolio from Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN) for CAD 740 million on July 15, 2024. The purchase price will be satisfied in part through an interest-only vendor take-back loan of $140 million, bearing interest at a rate of 3.0% per annum for a five-year term, with the remaining $600 million to be satisfied in cash. CAPREIT intends to utilize the net sale proceeds for: (1) the repayment of the balance outstanding on its Canadian revolving credit facility (approximately $187.0 million as of June 30, 2024); (2) future acquisitions of on-strategy rental properties in
Canada; and (3) general business purposes, which may include capital expenditures, debt repayment and the repurchase of trust units under its normal course issuer bid. The transaction is subject to approval by regulatory board / committee, compliance with the Canada Competition Act, other closing conditions and is expected to close in the fourth quarter of 2024.