HALIFAX,
NS, April 18, 2022 /CNW/ - NexLiving
Communities Inc. (TSXV: NXLV) ("NexLiving" or the "Company")
announced today that it has acquired a 58-suite building in
Lindsay, ON ("35 Angeline") for
$13.4 million. The acquisition will
be financed with a combination of cash on hand and $10.1 million of new short-term debt, which will
include a capital expenditure facility.
35 Angeline is a six-storey building located in Lindsay, Ontario, a secondary market
approximately 60 minutes east of Toronto. The institutional quality building
was constructed in 1977 and the Company plans to undertake a
targeted value-add capital program to reposition the building and
suites to satisfy the growing demand for premium rental suites in
Eastern Ontario.
The property fits NexLiving's stated strategy of targeting
buildings that are in close proximity to key amenities desired by
55+ residents. 35 Angeline is steps away from downtown Lindsay, Ross Memorial Hospital, Lindsay Golf
& Country Club and a number of parks and nature trails. This
acquisition expands NexLiving's presence in the high-growth
Eastern Ontario region. Average
home prices in the Kawarthas region have doubled from pre-pandemic
levels as the 407 Highway extension, which now extends east to just
south of Lindsay, has dramatically
reduced commute times to and from Toronto.
Stavro
Stathonikos, President of NexLiving commented: "35 Angeline
represents a natural extension of our existing strategy of
acquiring quality buildings that cater to 55+ residents looking for
premium rental options. Once our value-add capital program is
complete, 35 Angeline will be a uniquely positioned premium
building in the Lindsay market.
Furthermore, the transaction expands our presence in Ontario where we expect to focus on more
value-add opportunities where we can achieve pro forma yields in
excess of what is achievable by simply purchasing stabilized
buildings."
NexLiving has more than tripled the size of the portfolio over
the past 24 months. The Company expects to continue to build upon
its successful acquisition track record and acquire an additional
500+ suites by year end, with a focus in Ontario, Nova
Scotia and New
Brunswick.
Two directors of NexLiving have an economic interest (less than
5%) in the company that sold the building. The purchase was
negotiated at arm's length by senior management of the Company and
included an independent 3rd party appraisal. The terms
of the purchase were reviewed, considered and approved by
independent directors of the Board of NexLiving exclusive of these
two directors. For more information about NexLiving, please
refer to our website at www.nexliving.ca and our public disclosure
at www.sedar.com.
About the Company
NexLiving continues to execute its plans to acquire recently
built or refurbished, highly leased multi-residential properties in
bedroom communities across Canada.
The Company aims to satisfy the needs of the newly emerging 55+
resident. The demographic that has changed the world is now
changing the way residential rental apartments cater to their
requirements. Their desire for community, along with service,
quality and convenience has led to the emergence of the 55+ active
living segment. Apartments are their next "home", after years of
owning they look forward to the carefree lifestyle provided through
renting in a community of their peers. NexLiving intends to
consolidate this emerging market niche. The Company currently owns
827 suites in New Brunswick and
Ontario. NexLiving has also
developed a robust pipeline of qualified properties for potential
acquisition. By screening the properties identified to match the
criteria set out by the Company (proximity to healthcare,
amenities, services and recreation), management has assembled a
significant pipeline of potential acquisitions for consideration by
the Company's Board of Directors.
Forward-Looking Statements
This news release contains forward-looking statements relating
to the future operations of NexLiving and other statements that are
not historical facts. Forward-looking statements are often
identified by terms such as "will", "may", "should", "anticipate",
"expects" and similar expressions. All statements other than
statements of historical fact, included in this release, including,
without limitation, statements regarding the future plans and
objectives of NexLiving Communities Inc, are forward-looking
statements that involve risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from NexLiving Communities
Inc.'s expectations include other risks detailed from time to time
in the filings made by NexLIving Communities Inc. with securities
regulators.
The reader is cautioned that assumptions used in the preparation
of any forward-looking information may prove to be incorrect.
Events or circumstances may cause actual results to differ
materially from those predicted, as a result of numerous known and
unknown risks, uncertainties, and other factors, many of which are
beyond the control of NexLiving Communities Inc. The reader is
cautioned not to place undue reliance on any forward-looking
information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release and NexLiving Communities Inc.
will only update or revise publicly the included forward-looking
statements as expressly required by Canadian securities law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
SOURCE NexLiving Communities Inc.