08:25 AM EST, 12/16/2024 (MT Newswires) -- Minto Apartment Real Estate Investment Trust (MI-UN.TO) on Monday said it agreed to buy a 50% managing interest in Lonsdale Square property.

A national Canadian life insurance company will buy the remaining 50% non-managing interest.

The REIT will pay $52.96 million, which will be funded through a mortgage.

The company said the Canada Mortgage and Housing Corporation-insured mortgage bears an annual interest rate of 3.9% and has a maturity date of Dec. 1, 2034. The REIT will also get full repayment of the $14 million convertible development loan related to the asset, which will be used to repay a portion of its revolving credit facility upon closing of the deal.

"We believe the REIT has demonstrated prudence and discipline over time and we will continue to be disciplined when considering future acquisition opportunities, which will be evaluated in the context of cost of capital, pro forma leverage and prevailing market conditions," said Minto Apartment Chief Executive Jonathan Li.

Shares of the company closed down $0.12 or 0.9%, to $13.46 on Friday on the Toronto Stock Exchange.