Canada: Untapped Market
CHC Realty Capital Corp entering into an agreement to buy the Liberty Terrace student housing property in Kingston is the latest maneuver for the Toronto-based capital pool company to fill a void in Canadian off-campus student housing, CEO Mark Hansen tells us. The Kingston deal means CHC now has ownership in four properties, making them one of the largest owners of student housing in Canada (2,000 beds)—with more on the horizon. We caught up with Mark as he headed out for a flight to Montreal to look into another possible acquisition.
In its growth strategy, CHC is targeting both existing product for acquisition and new-build opportunities in partnership with other developers in close proximity to major universities in proven markets across Canada. CHC leases by the room, or by the bed. “Right now many kids are living in illegal apartments or run-down housing,” Mark tells us. "There is a critical mass of kids here and not enough supply." The purchase price for Liberty Terrace, close to Queen’s University, is $2.5M. The property has 18 beds and just over 1,100 SF of ground-floor commercial space (100% leased to two tenants).
