NexLiving Communities Inc. entered into an agreement to acquire Portfolio of Multi-Family Assets in Ontario and Québec from Devcore Group Inc. for approximately CAD 200 million.
January 21, 2024
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NexLiving Communities Inc. (TSXV:NXLV) entered into letter of intent to acquire Portfolio of Multi-Family Assets in Ontario and Québec from Devcore Group Inc. for approximately CAD 200 million on September 29, 2023. NexLiving Communities Inc. (TSXV:NXLV) entered into an agreement to acquire Portfolio of Multi-Family Assets in Ontario and Québec from Devcore Group Inc. for approximately CAD 200 million on January 21, 2024. As consideration for the Acquisition Portfolio, NexLiving will issue 16,490,933 shares of NexLiving to Devcore and will directly or indirectly assume approximately CAD 166 million of mortgage principal. Upon closing of the Transaction, Jeff York, Co-owner of the seller and former co-CEO at Farm Boy Inc will be appointed as Chairman of NexLiving's board of directors (the "Board") and Rick Turner will serve as Vice Chairman of the Board. Following closing of the Transaction, NexLiving will continue to be managed by the current NexLiving management team and the Board will consist of Jeff York (Chairman), Rick Turner (Vice Chairman), Stavro Stathonikos (Chief Executive Officer), Michael Anaka, Bill Hennessey, Jean-Pierre Poulin and Francis Pomerleau. Assuming a successful closing of the Transaction, Dr. Brian Ramjattan, David Pappin, Drew Koivu and Andrea Morwick are expected to step down from the current board. Termination fee of CAD 1.5 million will be paid either by NexLiving or Devcore, basis which party terminates the transaction.
As of April 3, 2024, NexLiving shareholders voted in favour of the Transaction Resolution.
The implementation of the Transaction will be subject to the approval of a simple majority of votes cast by NexLiving shareholders at a special meeting expected to be convened by NexLiving shareholders in the first half of 2024, the receipt of applicable regulatory approvals and certain other customary closing conditions. The NexLiving Board has unanimously determined that the Transaction is in the best interests of the Company and has recommended that shareholders vote in favour of the Transaction at the Meeting. As of February 21, 2024, Competition Act approval and the conditional approval of the TSX Venture Exchange has been received. NexLiving Communities intends to hold its shareholder meeting on April 3, 2024 in order to obtain the shareholder approval. Jeffrey Elliott and Jeff Hershenfield of Stikeman Elliott LLP acted as a legal counsel to NexLiving. Cormark Securities Inc. acted as a financial advisor and Norman Lieff and Paul Amirault of Norton Rose Fulbright LLP acted as a legal counsel to Devcore. Echelon Capital Markets provided fairness opinion to NexLiving Communities Inc. (TSXV:NXLV). The Transaction is expected to close during the end of the second quarter of 2024.
NexLiving Communities Inc. is a Canada-based company, which invests in multi-family properties in bedroom communities. The Company is principally engaged in the ownership and management of multi-unit residential real estate with a focus on low and mid-rise properties in bedroom communities across Canada. The Company owns 1,166 units in New Brunswick and Ontario. The Company is focused on satisfying the needs of 55+ residents, who are primarily retired, or close to retirement, who are downsizing their home footprint and seeking a lock-and-leave lifestyle. Its apartment buildings are newly built class A, low- and mid-rise with modern or high-end fixtures with an elevator and underground heated parking and storage. It has also developed a robust pipeline of properties for potential acquisition. It offers a range of modern and updated suites with one to three bedrooms, with a variety of amenities and features that allow residents to experience a hassle-free and maintenance-free lifestyle.
NexLiving Communities Inc. entered into an agreement to acquire Portfolio of Multi-Family Assets in Ontario and Québec from Devcore Group Inc. for approximately CAD 200 million.
NEXLIVING COMMUNITIES INC. 
