Boardwalk REIT and Desjardins Global Asset Management Launch Joint Venture for Multi-Family Assets in Western Canada

📅 2 weeks ago

Calgary's Boardwalk REIT has partnered with Montreal's Desjardins Global Asset Management to acquire high-quality multi-family assets across Western Canada, starting with an initial portfolio valued at approximately $292 million.

Calgary-based Boardwalk REIT (TSX: BEI.UN) has entered into a joint venture with Montreal's Desjardins Global Asset Management (DGAM), focusing on acquiring and owning premium multi-family properties throughout Western Canada. The partnership aims to establish a long-term collaboration, with intentions to expand through additional core plus acquisitions that mirror the initial transaction, as indicated in a joint press release. The partners acknowledged that future investments would be contingent upon prevailing market conditions.
The joint venture’s inaugural portfolio encompasses 655 units distributed across four properties, including two located in Calgary, Alberta, and two in Greater Victoria, British Columbia. This initial collection is valued at approximately $292 million, translating to $446,000 per unit, with a net value of $173 million after accounting for existing mortgages. Notably, all four properties are currently owned by Boardwalk REIT. DGAM is set to acquire a 50% stake in this portfolio for around $146 million, which amounts to $86.5 million net of the existing mortgages assumed.
Boardwalk REIT revealed in the press release that it was DGAM that initiated this collaboration. The company operates its properties through three segments: Boardwalk Living, Boardwalk Communities, and Boardwalk Lifestyle, the latter focusing on luxury assets. All four properties within the initial portfolio are categorized under the Lifestyle segment.
The properties included in the initial portfolio are:
- **Brio**: A 12-storey building located at 50 Brentwood Common NW in Calgary, featuring 162 units along with retail space. Boardwalk acquired the full ownership by buying out RioCan’s 50% stake for $37.4 million last year.
- **Elbow 5 Eight**: A six-storey building at 730 58 Avenue SW in Calgary, comprising 255 units. Boardwalk purchased this asset from Cove Properties for $93 million last year.
- **The Vue**: A 12-storey mass timber building, previously known as Tallwood 1, located at 2830 Peatt Road in Langford, home to 124 units and situated just 15 minutes from downtown Victoria.
- **Aurora**: A five-storey building, formerly called Eagle Creek, located at 2 Watkiss Way in View Royal, featuring 114 units and close to Victoria General Hospital.
The portfolio is projected to be seeded at an implied cap rate of approximately 4.7%, with an occupancy rate of 96.9% as of late July 2026. The transaction is expected to close in September, according to Boardwalk REIT’s Q2 financial report.
Boardwalk will manage the daily operations of the portfolio and will earn a property management and administration fee of 4.25% of the effective gross income. This arrangement is expected to yield a 0.25% improvement on Boardwalk's proportionate investments.
The partnership is designed to leverage Boardwalk's integrated operational platform, extensive market expertise, and proven acquisition capabilities alongside DGAM Real Estate Fund's institutional investment capital. Both parties plan to target attractive multi-family investment opportunities in markets characterized by robust demographic growth, favorable affordability compared to homeownership, and resilient economic fundamentals.
Richard Dansereau, Managing Director and Head of Real Estate at DGAM, emphasized that this partnership aligns with their strategy of investing in high-quality real estate assets in major Canadian markets while collaborating with top-tier operators. Sam Kolias, Chairman and CEO of Boardwalk, added that Canada’s multi-family sector is benefiting from strong long-term fundamentals, including affordability, population growth, and increasing demand for quality rental housing. Through this collaboration, Boardwalk aims to access additional growth capital while retaining the financial flexibility and disciplined capital allocation that have been pivotal to its success.

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