Certainly one of Western CanadaвЂ™s biggest landlords, which currently controls a 3rd associated with the Surrey, B.C., multi-family leasing market, is preparing a multimillion-dollar purchase expansion in British Columbia вЂ“ a move this is certainly producing a currency markets buzz.
вЂњTell your visitors i will be buying,вЂќ Bob Dhillon, creator and CEO of Calgary-based Mainstreet Equity Corp.(MEQ.TSX) told Western Investor.
Dhillon, who has got taken Mainstreet from the 22-cents-a-share launch in the Toronto stock market to a $65-per-share behemoth with $2.1 billion in assets and almost 14,000 leasing devices, contends it really is smaller, older apartment structures that provide the investor opportunity that is best in B.C.вЂ™s multi-family market.
Their target renters, which he said are legion, are the ones in a position to spend $1,000 or less for rental, it may be closer to $1,400 even in the secondary B.C. markets he plans to buy into though he noted.
вЂњWe are typical about affordable housing,вЂќ Dhillon stated, вЂњbut Mainstreet is just a cash-flow device.вЂќ
To date in 2010, Mainstreet has invested about $89 million purchasing apartment buildings, mostly in Alberta. In July the business paid $30.5 million for a Calgary that is 188-unit rental, purchasing it for approximately $1 million below its assessed value from Canadian Apartment Properties investment Trust. It had been the multi-family deal that is largest this season in Calgary, where many investors have actually fled the marketplace.
Dhillon includes a counterintuitive strategy that requires buying lower-income, underperforming rental buildings, renovating them and increasing the rents.