Bedford, N.S.-based Nova Georgia Properties Ltd. has closed a $640,000 property acquisition in Georgia – another step in its drive to build up a portfolio of residential real estate in the southeastern U.S.

CEO Jamie Nicoll said in an interview the company founded in 2010 has so far built up a stock of 115 properties in Georgia, and intends to continue acquiring until it develops a portfolio that extends from Florida to Tennessee. As the management and board assess strategy, they are considering taking the company public, which would allow it greater liquidity and help to attract institutional money to finance further expansion.

Nova Georgia was set up to buy and hold depressed residential real estate in the wake of the U.S. housing crash with the aim of building up an assembly of B-grade real estate with strong cash flow. It targets suburban areas with dependable employment, such as those near a military base, hospital or airport.

“What we’re doing is we’re marrying up Canadian capital with distressed U.S. assets,” said Nicoll, who recently left PricewaterhouseCoopers to focus full-time on Nova Georgia. “We’re having a great time acquiring real estate because, for the most part, it’s below replacement value and I believe that will continue to be the case for quite some time.”

Nicoll said that the U.S. banking problems and levels of consumer debt mean that the company should be able to find good real estate at low prices for some time. Asked how big he wants the portfolio to grow, he answered that a suitable model is Halifax-based Killam Properties, whose portfolio includes 11,636 apartment units.

Nova Georgia’s latest acquisition comprised the purchase of eight townhomes in the Open Fields development in Snellville, Ga., where the company already owned five units. These townhouses are fully rented at $1200 per month, adding $115,000 in annual profitable revenue.

The company financed the purchase with a mortgage from First American Bank & Trust, located in Athens, Ga. It now contracts out the management of its properties to an independent manager, though it could manage the units internally as the portfolio grows.

Nicoll said Nova Georgia has no immediate plans to seek a stock market listing, but added that the board has charged management with reviewing all options for future funding. If it does decide to go public, it would like seek a listing on the Toronto Venture Exchange, which Nicoll called “the best of the junior markets”.

The portfolio now has a net asset value of about $8 million, which Nicoll said is just big enough for a publicly traded company though he would prefer a bit more heft before seeking a listing.