/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
- Continue to assemble a high quality portfolio of 55+
active-living properties
- 19 buildings, over 530 units post completion of the new
acquisitions
- Strong acquisition pipeline of new product in 2021
- Partnering with market leading third-party service providers to
add incremental revenue
HALIFAX, NS, Nov. 16, 2020 /CNW/ - ViveRE Communities
Inc. (TSX.V: VCOM) ("ViveRE" or the "Company")
announced today that it has entered into an engagement agreement
with Echelon Wealth Partners Inc. as co-lead agent and sole
bookrunner for a syndicate of agents (the "Agents"), and has
filed a preliminary short form prospectus with the securities
regulatory authorities in the provinces of Nova Scotia, New
Brunswick, Newfoundland and
Labrador, Ontario, Manitoba, Saskatchewan, Alberta, British
Columbia and Prince Edward
Island, pursuant to which the Company has agreed to issue,
and the Agent has agreed to sell, on a "commercially reasonable
best efforts" basis (the "Offering"), up to $7,500,000 of common shares (the "Shares).
The syndicate of Agents includes Canaccord Genuity Corp. as co-lead
and Laurentian Bank Securities Inc.
The Company has also agreed to grant the Agents an
option (the "Over-Allotment Option"), exercisable
in whole or in part at the sole discretion of the Agents, any time
not later than the 30th day following the Closing Date (as defined
below), to offer up to an additional 15% common shares (the
"Over-Allotment Shares") at the offering price for
additional gross proceeds of up to $1,125,000, for the purpose of covering
over-allotments made in connection with the Offering and for market
stabilization purposes.
The closing of the Offering is anticipated to occur on
December 9, 2020 or such other date
as the Company and the Agents may agree (the "Closing
Date").
The Acquisitions
The Company intends to use a portion of the gross proceeds of
the Offering to finance the acquisition of three multi-family
properties in Moncton, New
Brunswick, located at 2380 Mountain Road, 27 Edmond Street
and 50 Maplewood Drive ("Mountain Road", "Edmond
Street" and "Maplewood", respectively), and to finance
the acquisition of a multi-family property located at 51 Noel
Avenue in Saint John, New
Brunswick (the "Noel Property"). The acquisitions of
Mountain Road, Edmond Street, Maplewood and the Noel Property are
hereinafter referred to as the "Acquisitions".
Noel Property
Village View No. 3 Limited Partnership is a limited partnership
formed under the laws of the Province of New Brunswick, whose sole asset is the Noel
Property. The purchase price for the Noel Property is $11,250,000, subject to customary adjustments.
The Noel property is a high quality, 47-unit multi-family building
with 34 underground parking spaces, constructed in 2018 and is
focused on the 55+ year-old active living demographic.
Mountain Road
The Mountain Road property is a high quality 64-unit
multi-family building with 55 underground parking spaces,
constructed in 2015 and also focused on the 55+ year-old active
living demographic. The purchase price for Mountain Road is
$12,307,000, subject to customary
adjustments.
Both the Noel and Mountain Road properties are 100% occupied and
offer high-end living spaces with granite countertops, stainless
appliances, ensuite bathrooms and private balconies. Common areas
include fitness facilities and media and community rooms.
Edmond Street
The Edmond Street property is an 18-unit multi-family building
constructed in 2003. It is 100% occupied with 55+ residents. The
purchase price for Edmond Street is $1,841,500, subject to customary adjustments.
Maplewood
The Maplewood Property is a 13-unit multi-family building
constructed in 1995. It is 100% occupied with 55+ residents. The
purchase price for Maplewood is
$1,151,500, subject to customary
adjustments.
Following completion of the Acquisitions, the Company will own
19 buildings and over 530 units. In addition, the Company has an
accessible near term pipeline of qualified properties with an
aggregate value in excess of $50,000,000 and is currently finalizing
agreements with market leading service providers to provide
additional conveniences for our residents.
Quarterly Dividend Payment
The Board of Directors of the Company have approved an annual
dividend of $0.002 per common share
to be paid quarterly commencing in the first quarter of 2021 upon
the successful completion of the Offering.
"We are pleased to begin to provide shareholders with a
responsible yield from the indirect ownership of multi-family
properties in the active-living segment, " said Mike Anaka, President and CEO of the Company.
"This decision is an important milestone in the continued growth of
the Company and delivers on our committment to shareholders to
instutite a dividend at the appropriate time." The $0.002 per common share dividend represents
approximately a 10% payout ratio on expected 2021 AFFO.
Copies of the acquisition agreements for the Mountain Road,
Edmond Street, Maplewood and 51
Noel properties are available on the Company's SEDAR profile.
The Acquisitions and the Offering will be subject to certain
customary conditions including, but not limited to, the receipt of
all necessary approvals, including the approval of the TSXV, and
the applicable securities regulatory authorities. A copy of the
preliminary short form prospectus is available on SEDAR under the
Company's profile at www.sedar.com.
The common shares subject to the Offering have not been and
will not be registered under the U.S. Securities Act and may not be
offered or sold in the United
States absent registration under or an applicable exemption
from the registration requirements of the U.S. Securities Act. This
press release does not constitute an offer to sell or the
solicitation of an offer to buy the shares herein described, and
shall not constitute an offer, solicitation or sale in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of that jurisdiction.
About ViveRE Communities Inc.
ViveRE 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 and
convenience amenities has led to the emergence of the 55+ active
living segment. Apartments are the next "home", after years of
owning they look forward to the carefree lifestyle provided through
renting in a community of their peers. ViveRE intends to
consolidate this emerging market niche. The Company currently
owns 391 units in New Brunswick
and Ontario. ViveRE has also
developed a robust pipeline of qualified properties for potential
acquisition. By Screening the properties identified to match the
criteria set out in the Company business plan (proximity to
healthcare, amenities, services and shopping), management has
identified a significant pipeline of potential acquisitions for
consideration by the Board of the Company.
Forward-looking statements
This news release contains forward-looking statements
relating to the future operations of ViveRE and other statements
that are not historical facts. Forward-looking statements are often
identified by terms such as "aims", "intends", "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 Acquisitions and the Offering, the size and pricing of the
Offering, receipt of requested TSXV and securities regulatory
approvals, and the future plans and objectives of ViveRE
Communities Inc, are forward-looking statements that involve risks
and uncertainties, and are necessarily based on a number of
assumptions that, while considered reasonable by
management, are inherently subject to business, market and economic
risks, uncertainties and contingencies that may cause actual
results, performance or achievements to be materially different
from those expressed or implied by forward-looking statements.
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
ViveRE Communities Inc.'s expectations include other risks detailed
from time to time in the filings made by ViveRE Communities Inc.
with securities regulators.
Forward-looking information in this news release includes
expectations relating to: ViveRE's ability to satisfy customary
closing conditions with respect to the Acquisitions; the pipeline
for future acquisitions which may be impacted by ViveRE's ability
to negotiate suitable terms, due diligence, access to capital and
market conditions; operating results which may be impacted by
unexpected vacancies and maintenance expenses; availability of
capital which may be impacted by the results of the offering,
capital market and borrowing conditions and the implementation of a
$0.002 per common share dividend
representing approximately a 10% payout ratio on expected 2021
AFFO.
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 ViveRE 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 ViveRE Communities Inc.
will only update or revise publicly the included forward-looking
statements as expressly required by Canadian securities
law.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this press
release.
SOURCE ViveRE Communities Inc.