NexLiving Announces Acquisition of a 58-Suite Building in Lindsay, OntarioApril 18 2022
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.
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: Michael Anaka, Chief Executive Officer, 902-440-7579; Stavro Stathonikos, President, 416-876-6617