Calgary-based Boardwalk REIT (TSX: BEI.UN) and Montreal-based Desjardins Global Asset Management (DGAM) have formed a new joint venture focused on acquiring and owning high-quality multi-family assets across Western Canada.
“The intent of both parties is to build a long-term partnership that is expected to grow through future core plus acquisitions similar to the communities acquired in the initial transaction,” said the partners in a press release. “It is understood by both parties that future transactions will be dependent on market conditions.”
“The Co-Ownership is expected to enhance the ability of both parties to pursue attractive acquisition opportunities to their mutual benefit, while retaining capital allocation flexibility for both partners.”
The joint venture has an initial portfolio of 655 units across four assets — two in Boardwalk’s backyard of Calgary, Alberta and two in Greater Victoria on Vancouver Island in British Columbia — with a value of approximately $292,000,000 ($173 million net of existing mortgages), which translates to $446,000 per unit.
The four properties are all currently owned by Boardwalk REIT. Desjardins, through its DGAM Real Estate Fund, is acquiring a 50% in the portfolio for approximately $146 million ($86.5 million net of existing mortgages assumed). Boardwalk noted in the press release that it was DGAM that approached them.
Boardwalk REIT operates its properties under three segments: Boardwalk Living, Boardwalk Communities, and Boardwalk Lifestyle, the last of which is its luxury segment. All four assets in the initial portfolio are under the Lifestyle segment.
The Initial Portfolio
- Brio: A 12-storey building located at 50 Brentwood Common NW in Calgary with 162 units and retail space. Boardwalk bought out RioCan’s 50% stake last year for $37,400,000.
- Elbow 5 Eight: A six-storey building located at 730 58 Avenue SW in Calgary with 255 units that Boardwalk acquired from Cove Properties last year for $93,000,000.
- The Vue: A 12-storey mass timber building formerly known as Tallwood 1 that’s home to 124 units, located at 2830 Peatt Road in Langford, 15 minutes away from downtown Victoria.
- Aurora: A five-story building formerly known as Eagle Creek with 114 units, located at 2 Watkiss Way in View Royal near Victoria General Hospital.
The portfolio is being seeded at an implied cap rate of approximately 4.7% with an occupancy of 96.9% as of late July 2026, and the transaction is set to close in September, according to Boardwalk REIT’s Q2 financial report.
Boardwalk will continue to manage the day-to-day operations and will also earn a property management and administrative fee equal to 4.25% of effective gross income, which provides the REIT with a 0.25% yield improvement on its proportionate investments, according to Boardwalk.
The Vue at 2830 Peatt Road in Langford, British Columbia. (Boardwalk REIT)
“The Co-Ownership combines Boardwalk's vertically integrated operating platform, deep market knowledge, and proven acquisition capabilities with DGAM Real Estate Fund's long-term institutional investment capital,” the press release also stated. “Together, the parties intend to pursue attractive multifamily investment opportunities in markets characterized by strong demographic growth, attractive affordability relative to home ownership, and resilient economic fundamentals.”
DGAM’s Managing Director and Head of Real Estate Richard Dansereau said the partnership “reflects our approach to investing in high-quality real estate assets in major markets across Canada and partnering with best-in-class operators.”
“Canada's multifamily sector continues to benefit from compelling long-term fundamentals, including affordability relative to home ownership, population growth, and increasing demand for high-quality rental housing,” added Boardwalk Chairman and CEO Sam Kolias. “Through this partnership, Boardwalk gains an additional source of growth capital while maintaining the financial flexibility and disciplined capital allocation that have been hallmarks of our success.”
