Trillium buys 3 Calgary rentals and rebrands

• What Trillium Acquisition Corp is buying three Calgary rental properties for $84.7 million.
• Why The move is part of a business integration agreement that will see the company operate under a new name
• What's next The company is evaluating other new Class A buildings in Calgary for potential acquisition

Trillium Acquisition Corp. last week agreed to buy three new multi-unit properties in Calgary — the first investment for the equity firm, which is looking to acquire more such properties in the city.

The total purchase price is $84.7 million, with each property worth approximately $28 million. Trillium consists of three private businesses – Bankview1827 Investment Corp., Capitol Hill 1426 Development Corp. and Trillium will pay $14.5 million in cash and 118,920,000 shares of common stock to acquire the property from Sunalta 1509 Development Corp.

As part of the deal, Trillium will merge with the sellers and will be renamed, primarily, Exceptional Quality Homes.

Brava Development Corp. built properties: The Nimmons, an 84-unit apartment building and heritage house converted into a law office at 1420 19 Avenue SW; Cunningham, a 41-unit building at 1509 15 Avenue SW; and The Wilderness Ridge, a 24-townhouse complex at 1426 23 Avenue NW.

Going forward, Trillium will focus on new Class A multi-family properties in Calgary, which are becoming increasingly attractive to investors due to their relatively affordable prices and growing population. Trillium is looking at other properties in the city, especially properties that meet environmental sustainability standards and include affordable housing. No contract has been signed yet.

Pending purchases include Canada Mortgage and Housing Corp., which offers incentives based on affordability, affordability and energy efficiency. financed by the company's MLI Select mortgage loan insurance program.

Several industry veterans will serve as directors of the company. Chairman of the Board Ryan Bazant, Lear Construction Management Ltd. company president. Other directors are RKG Consulting Inc. Rob Geremia, founder and former president of Boardwalk REIT; Kelly Hanczyk, CEO of Nexus Industrial REIT; and Theodore Manziaris, founder of Right at Home Realty and founder of Edgefront REIT, which later became Nexus REIT.

Geremia serves as the company's CEO, while the board selects other senior managers.

There are a number of closing conditions to the pending sale, including Trillium's receipt of an $84.7 million valuation of the assets. Proceeds from the private placement as part of the merger are expected to be at least $13 million. These funds will be used to satisfy the cash flow of the transaction. If there are insufficient funds, the seller can take back the mortgage with a 12-month term of up to $9.5 million and no interest.