08:15 AM EDT, 07/15/2024 (MT Newswires) -- Canadian Apartment Properties Real Estate Investment Trust (CAR-UN.TO) is selling its manufactured home community (MHC) portfolio for $740 million (excluding transaction costs) to TPG Real Estate.

The portfolio is comprised of 12,138 residential lots across 75 community sites in Canada.

The purchase price will be partially covered with an interest-only vendor take-back loan of $140 million, bearing interest at a rate of 3% per annum for a five-year term. The remaining $600 million will be paid in cash.

CAPREIT will use sale proceeds to repay the $187 million outstanding on its revolving credit facility, for future acquisitions of rental properties in Canada, and to cover general business purposes.

Subject to regulatory approval, the transaction is expected to close in the fourth quarter of this year.