Boardwalk REIT and DGAM Forge Strategic Partnership for Multifamily Growth

In a strategic move aimed at enhancing their presence in the Western Canadian multifamily market, Boardwalk Real Estate Investment Trust (Boardwalk) has partnered with the DGAM Canadian Private Real Estate Fund, managed by Desjardins Global Asset Management (DGAM). This partnership, which establishes a co-ownership structure, comes with an initial seed portfolio valued at around $292 million, marking a significant milestone for both entities in their growth strategies.

Overview of the Partnership

The co-ownership agreement aims to strengthen the investment capabilities of both organizations in acquiring high-quality multifamily residences primarily located in Alberta and British Columbia. Initially, DGAM will acquire a 50% stake in four key apartment communities located in Calgary and Victoria, representing an estimated gross portfolio value of $292 million. This investment brings Boardwalk access to long-term institutional capital while allowing them to retain operational control over the properties.

The partnership, characterized by its alignment of interests, is forecasted to pave the way for further acquisitions as market conditions permit. It is structured to preserve flexibility for both parties, allowing them to adapt to future opportunities without being restricted by exclusivity agreements.

Transaction Highlights

1. Significant Portfolio Value: The initial investment is approximately $292 million, with DGAM acquiring a 50% interest valued at $146 million.
2. High Occupancy Rates: The portfolio boasts a near-perfect occupancy rate of 96.9%, indicating strong demand in the market.
3. Recurring Revenue Stream: Boardwalk stands to gain property management fees from the partnership, generating steady income from its operations.
4. Collaboration and Growth Potential: The partnership's founding principles are based on mutual respect and collaboration, setting the stage for potential future acquisitions.

Strategic Advantages

This collaboration not only reinforces Boardwalk’s long-term growth but also complements DGAM’s focus on core real estate investments across Canada. By aligning their operational strengths and investment goals, both companies aim to capitalize on the evolving needs of the Canadian rental housing market, characterized by increasing demand for high-quality multifamily units.

Sam Kolias, Chairman and CEO of Boardwalk REIT, expressed his enthusiasm about the partnership, stating, "This collaboration represents a strong endorsement of our operational platform and aligns with our strategy to create better communities. It allows us to continue our mission of providing high-quality homes while generating attractive returns for our stakeholders."

Richard Dansereau, Managing Director at DGAM, echoed this sentiment, reinforcing their commitment to investing in high-quality real estate assets and highlighting Boardwalk's proven operational capabilities as a major draw for this partnership.

Future Outlook

With the Canadian rental market's compelling long-term fundamentals — such as population growth and increasing demand for quality rental housing — the Boardwalk-DGAM collaboration is well-positioned to leverage these factors. The partnership aims to not only expand their portfolio but also enhance their operational performance, ensuring that both entities can meet the demands of their resident family members while continuing to generate significant returns.

By establishing this co-ownership, Boardwalk and DGAM are setting a benchmark for future collaborations in the multifamily sector, demonstrating how strategic partnerships can lead to sustainable growth and shared success in challenging market environments.