NexLiving Communities announces closing of 150-unit Mountain Road acquisition and declares quarterly dividendMarch 01 2023
HALIFAX, NS, March 1, 2023 /CNW/ - (TSXV: NXLV) – NexLiving Communities Inc. ("NexLiving" or the "Company") announced today that its acquisition of a 100% interest in Northpoint Management Inc. ("Northpoint") from Sheaco Holdings Inc. has closed. Northpoint's key assets are two newly built multi-family buildings comprising 75 units each located at 2251 and 2261 Mountain Road, Moncton NB. The Company previously announced its intention to acquire these buildings on November 4, 2021, with subsequent updates to the transaction announced on December 5, 2022, and February 21, 2023.
The purchase price for the acquisition was paid by the issuance of 37,500,000 common shares at a deemed issue price of $0.20 per share (valued at $7.5 million), cash of $1.4 million and a $30.7 million CMHC insured mortgage bearing interest at 4.19% with a 10-year term.
The Northpoint buildings are located in North Moncton and feature large units with attractive upgrades including granite countertops, hardwood floors, stainless steel appliances and energy efficient heat pumps. Each building contains an elevator and offers residents underground parking and storage lockers.
The Company's board of directors has approved and declared a dividend of 0.05 cents per common share for the quarter ending March 31, representing 0.2 cents per share on an annualized basis. The dividend is payable on, or after March 31 to shareholders of record at the close of business on March 7.
The Company designates these taxable dividends to be paid to its holders as eligible dividends and will notify the holders such dividends are being paid as eligible dividends for the purposes of the Income Tax Act (Canada) and corresponding provincial legislation.
About the Company
NexLiving continues to execute its plans to acquire recently built or refurbished, highly leased multi-residential properties in bedroom communities in Atlantic 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.
For its recently acquired properties in Ontario the Company plans to undertake a targeted value-add capital program to modernize and reposition the large 1- and 2-bedroom suites. The Company currently owns 1,166 units 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 forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "projects", "estimates", "forecasts", "intends", "continues", "anticipates", or "does not anticipate" or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements contained in this news release include, but are not limited to management's expectations of additional rental increases to come into effect by year end and the further enhancement of the Company's financial results. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. These forward-looking statements reflect the current expectations of the Company's management regarding future events and operating performance, but involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual events could differ materially from those projected herein and depend on a number of factors. These risks and uncertainties are more fully described in regulatory filings, including the Company's Annual Information Form, which can be obtained on SEDAR at www.sedar.com, under NexLiving's profile, as well as under Risk Factors section of the MD&A released on April 18, 2022. Although forward-looking statements contained in this new release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this new release speak only as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable 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.
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