Firm Capital Completes Acquisition of 50% Interest in 10 MHCs for $218M

News| July 22, 2026| Monte Stewart

Firm Capital Property Trust has closed on its previously announced acquisition of a 50% interest in 10 manufactured-home communities in Alberta and Saskatchewan for $218 million.

The 10 properties contain 1,649 sites altogether.

“Today marks a major step forward for Firm Capital Property Trust,” said Robert McKee, the trust’s president and CEO. “This acquisition expands our manufactured-housing portfolio, strengthens our presence across Western Canada, and establishes a broader platform for disciplined growth.”

Along with the 10 properties, the acquisition includes 142 park-owned homes and 184 chattel mortgage. The properties contain 79 vacant sites, which will be be rented out, and additional density that will allow for the development of 92 expansion sites over time and could provide for additional cash-flow streams.

The trust anticipates that the partners will sell all of the park-owned homes in order to generate revenue from site rent and the chattel mortgages, said Firm. The chattel mortgages are tied to MHC owners and have a 6.49% weighted-average interest rate, 7.4-year weighted-average term, and are fully amortizing.

The trust acquired its 50% of the required equity of approximately $37 million, excluding transaction costs, through exist cash and credit-facility resources. The remaining equity for the portfolio came from SunPark’s remaining joint-venture partners. The remaining $145 million was provided through a six-year first mortgage using the 10 properties as collateral. Provided by an unidentified Canadian chartered bank, the mortgage has a 4.5% interest and allows Firm to make interest-only payments in the first two years before a 28-year amortization periods kicks in.

With the acquisition, the trust has completed the purchases of a 50% interest in 11 Prairie MHCs through its existing joint-venture with SunPark Communities for a total price of $227 million. SunPark owns the other 50% interest in the MHCs.

SunPark is a subsidiary of the trust’s parent, Firm Capital Realty Partners, and partially affiliated with the trust’s board and senior management.

The trust had previously completed the acquisition of one of 50% stakes in an MHC in Didsbury, Alta., for $8.5 million.

In addition to the land-lease communities, the broader transaction includes 151 park-owned homes and 192 chattel mortgages, which are expected to provide additional cash flow.

The properties are concentrated in key Western Canadian markets, including several communities along Alberta’s Highway 2 corridor between Calgary and Edmonton, as well as locations in and around Saskatoon.

The trust previously said the portfolio was approximately 94% occupied and is being acquired at a 6.4% capitalization rate. The transaction was expected to be immediately accretive, contributing about $0.02 per unit in annual adjusted funds from operations.

The acquisition will increase the trust’s exposure to non-rent-controlled markets in Alberta and Saskatchewan, while expanding the trust’s MHC segment and enhancing geographic diversification.

Based in Toronto’s North York district, Firm Capital Property Trust is a REIT backed by Firm Capital and focused on multi-residential, industrial and grocery-anchored retail properties, with an emphasis on stable income and long-term value creation.

Pictured: High River Village in High River, Alta., one of the 10 newly acquired MHCs.

Photo: MHBO.com