Northern Property plans Iqaluit buying spree

The Qamutiq office building in downtowen Iqaluit is seen shortly before its completion in February, 2010. The property could be part of a major Iqaluit real estate shakeup, as Northern Property REIT looks to take over a large portfolio of residential and commercial buildings in Nunavut’s capital. (PHOTO BY CHRIS WINDEYER)

Northern Property REIT plans to take over a long list of major properties in Iqaluit as part of a $51-million deal that could shake up the real estate market in Nunavut’s capital.

Northern Property is selling $50.7 million worth of stock and income trust units to a group of securities traders, the company announced in a May 5 news release.

The deal will fund some major real estate purchases and allow Northern Property to pay down debt. In addition to properties in Alberta and British Columbia, Northern Property is also picking up some major properties in Iqaluit.

The portfolio includes nearly 160 residential apartment units and “newly developed office building,” a hotel, and “several strategically located residential and commercial properties.” It also includes an “older operating hotel that will ultimately be demolished.”

That collection of properties sounds similar to a group of buildings owned by Edmonton’s Nova Builders, which owns the incorrectly-spelled Qamutiq office building downtown, the Nova Inn, several apartment buildings and the aging Navigator Inn, which is mostly used as staff housing for tradesmen working on other Nova projects.

Neither Jim Britton, president of Northern Property REIT, nor Mike Mrdjenovich, president of Nova Builders, responded to interview requests by mid-afternoon May 10.

Northern Property said the stock and trust unit sale should be completed by May 27, subject to regulatory approval.