ViveRE Announces Signing of Agreement to Acquire Multi-Family Rental Property
HALIFAX, NS, Nov. 6, 2020 /CNW/ - ViveRE Communities Inc. (TSXV: VCOM) ("ViveRE" or the "Company") announced today that it has entered into an agreement (the "Acquisition Agreement") to acquire Village View No. 3 Limited Partnership, a limited partnership formed under the laws of the Province of New Brunswick ("VV3LP"), whose sole asset is a multi-family rental property located at 51 Noel Avenue, Saint John, New Brunswick (the "Noel Property"). The purchase price for the Noel Property is $11,250,000, subject to customary adjustments, which will be paid as follows: cash deposit of $50,000 to be paid within two days of signing the Acquisition Agreement, the issuance of 2,727,272 common shares of ViveRE to the vendors at a price of $0.22 per common share (the "Acquisition Shares"), and the balance in cash. The acquisition of the Noel Property in accordance with the Acquisition Agreement is referred to herein as the "Acquisition".
The Acquisition is an arm's length transaction and is subject to customary closing conditions for transactions of this nature, including the receipt of required financing and all necessary third party (including lenders) consents and approvals. The Acquisition is also subject to TSX Venture Exchange (the "Exchange") approval.
ViveRE expects the completion of the Acquisition to occur during the fourth quarter of 2020.
Description of the Noel Property
The Noel Property, is a high quality, 47 unit, multi-family building, constructed in 2018 and is focused on the over 55 year old active living demographic. It is located in the growing Saint John, NB sub-market of Millidgeville, situated on the northern edge of the Saint John River, and adjacent to two of the Company's existing properties located at 41 and 50 Noel Avenue. The Noel Property offers high-end living spaces with granite countertops, stainless appliances, dishwasher, microwave range hood, washer and dryer, walk-in closet, ensuite bathrooms and private balconies. Common areas include gym facilities, media and community room, storage lockers as well as 34 underground parking spaces. The property has close proximity to a prominent transit route, Horizon's Saint John Regional Hospital, the University of New Brunswick and an abundance of nearby shopping, dining, and community centres.
August 2020 Debenture Financing
Further to the Company's press releases dated August 24, 2020 and September 1, 2020, the aggregate cash receipts from the debenture offering totaled $2,470,000. The approximate aggregate principal amount of the debentures sold was $2,600,000.
About the Company
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. Screening 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.
On behalf of the Board of Directors of ViveRE Communities Inc.
"Mike Anaka"
Chief Executive Officer
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.
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 "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 ViveRE 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 ViveRE Communities Inc.'s expectations include other risks detailed from time to time in the filings made by ViveRE 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 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.
SOURCE ViveRE Communities Inc.
Mike Anaka, Chief Executive Officer, 902-440-7579
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