NexLiving

NexLiving acquires 10 New Brunswick properties

Monday, November 15, 2021

NexLiving Communities announced it has acquired ten recently constructed apartment properties located in Moncton and Riverview, NB, for an aggregate purchase price of $72.6 million. Comprising 370 units in total, one of the buildings is currently in the initial lease-up stage, while another (“Mountain Road Properties”) is still under construction with an expected completion date of March 31, 2022.

“We are proud to announce these transformative acquisitions that provide both operational and financial scale to the company,” said NexLiving’s CEO, Mike Anaka. “Over the past three years, NexLiving has grown from one building and 31 units to 18 buildings and 549 units. The acquisitions allow us to nearly double the portfolio to 919 units, while providing significant FFO accretion to shareholders.”

NexLiving has structured the acquisition as four separate transactions, which will allow it to assume a CMHC mortgage on one of the buildings with an interest rate of 1.76 per cent, and also allow the Mountain Road Properties to stabilize and meet lease-up and income thresholds prior to completing the purchase. Upon full construction and lease-up of the Mountain Road Properties, anticipated to occur in Q2-2022, the portfolio is expected to generate $3.6 million in net operating income, which implies an overall portfolio capitalization rate of approximately 5.0 per cent.

All four transactions are subject to due diligence, financing, and in the case of the Mountain Road Properties, certain performance conditions. The transaction is expected to be immediately accretive, and once fully stabilized, in excess of 30 per cent accretive to FFO per share.

For more information on the acquisitions, click here.

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