NexLiving Announces Acquisition of a 40-Suite Building in Strathroy, OntarioAugust 10 2022
HALIFAX, NS, Aug. 10, 2022 /CNW/ - NexLiving Communities Inc. (TSXV: NXLV) ("NexLiving" or the "Company") announced today that it has acquired a 40-suite building in Strathroy, Ontario ("294 Saulsbury") for $9.4 million. The acquisition will be financed with a combination of cash on hand and a $7.9 million short-term debt facility, which will include a capital expenditure facility.
294 Saulsbury is a three-storey building situated on 1.44 acres of land in Strathroy, a bedroom community 30 km west of London, Ontario. The building was constructed in the 1960s and has recently undergone major refurbishment of large capital items, including windows, balconies and balcony doors. 294 Saulsbury is located steps away from Strathroy Middlesex General Hospital and is ideally situated in the heart of downtown Strathroy, within walking distance to shopping, grocery, transit and Alexandra Park. The Company plans to undertake a targeted value-add capital program to modernize and reposition the large 1- and 2-bedroom suites.
Stavro Stathonikos, CEO & President of NexLiving commented: "294 Saulsbury is our second value-add investment in the Ontario market, where we can achieve pro forma yields in excess of what is achievable by simply purchasing stabilized buildings. Once complete, the building will offer a premium rental opportunity to a growing number of 55+ residents looking for quality rental product in the Strathroy/West London market."
NexLiving has more than tripled the size of its 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 over the next year, with a focus in Ontario and Atlantic Canada.
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 867 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.
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.
For further information: Stavro Stathonikos, CEO & President, 416-876-6617; Michael Anaka, Executive Vice Chair, 902-440-7579