TORONTO, July 28,
2022 /CNW/ - Invesque Inc. (TSX: IVQ.U) and (TSX:
IVQ) (the "Company" or "Invesque") today announced the sale of
US$113 million of non-core assets.
Inclusive of previously announced dispositions, the Company has
sold US$292 million of assets over
the last twelve months.
On June 15, 2022, Invesque closed
on the sale of its interests in two 55+ communities in Wheatfield, New York.
- The communities were acquired in 2018 as part of the
acquisition of Care Investment Trust and were managed by Calamar
under a joint venture structure.
- The implied pricing from the sale transaction was very
favorable with an implied price per unit of US$145 thousand and an implied cap rate of 5.7%
on trailing NOI.
- The two Calamar communities operate as age restricted apartment
complexes and feature substantially less resident and health care
services than traditional seniors housing owned by Invesque.
- The Company received net cash proceeds of US$10.0 million at closing and plans to utilize
proceeds to continue de-levering and simplifying its balance
sheet.
On July 26, 2022, the Company
closed on the sale of the University Boulevard medical office
building in Orlando, Florida for
US$9.85 million.
- This stand-alone transaction was consummated with the operator
of the surgery center that is the largest tenant at the
property.
- The sale price reflected the high quality of the underlying
real estate equal to nearly US$300
per rentable square foot and a cap rate of 7.2% on trailing
NOI.
On July 28, 2022, the Company
closed on the sale of nine medical office buildings in Canada for CA$94.3 million.
- The purchaser, Appelt Properties, an owner, developer, and
manager of medical office buildings along with multifamily and
retail properties, was uniquely positioned to acquire the portfolio
based on its operating complexities and geographic diversity.
- The pricing for the nine properties was equal to CA$265 per
rentable square foot and represented a 5.0% cap rate on trailing
NOI.
"We have been very active over the past year executing on our
strategy to simplify our story, simplify our portfolio, and
simplify our balance sheet," remarked Scott
White, Chairman and CEO of the Company. "The recently closed
transactions allow us to continue de-levering and simplifying the
balance sheet and further positions the Invesque portfolio toward
being predominantly private pay seniors housing. The sale of the
majority of our medical office portfolio represents a
simplification of our portfolio, which will allow our team to focus
on value creation in our remaining private pay seniors housing
communities."
Following the completion of these transactions, the Company's
portfolio consists of 83 properties with approximately 5,700 units,
7,800 beds, and 190,000 square feet of medical office buildings
across 18 states and one Canadian province.
BMO Capital Markets acted as financial advisor to Invesque in
connection with the sale of the Canadian medical office
properties.
About Invesque
Invesque is a North American health care real estate company
with an investment thesis focused on the premise that an aging
demographic in North America will
continue to utilize health care services in growing proportion to
the overall economy. Invesque currently capitalizes on this
opportunity by investing in a portfolio of income generating
properties across the health care spectrum. Invesque's portfolio
includes investments in independent living, assisted living, memory
care, skilled nursing, transitional care, and medical office
properties, which are operated primarily under long-term leases and
joint venture arrangements with industry leading operating
partners. Invesque's portfolio also includes investments in
owner-occupied seniors housing properties in which Invesque owns
the real estate and provides management services through its
subsidiary management company, Commonwealth Senior Living.
Forward-Looking Information
This press release (this "Press Release") contains certain
forward-looking information and/or statements ("forward-looking
statements") that reflect and are provided for the purpose of
presenting information about management's current expectations and
plans relating to the future, including the utilization of proceeds
of dispositions. Forward-looking information are typically
identified by terms such as "believe," "continue", "expect,"
"expected," "expectations," "may," "plan," "plans," "should,"
"will," "would," and other similar expressions that do not relate
solely to historical matters. Readers should not place undue
reliance on forward-looking statements and are cautioned that
forward-looking statements may not be appropriate for other
purposes. Forward-looking statements in this Press Release are
based on current beliefs, expectations, and certain assumptions of
the Company's management and are subject to significant known and
unknown risks, uncertainties, and other factors that are beyond the
Company's ability to predict or control and may cause actual
results or events to differ materially from those expressed or
implied by such statements and, accordingly, should not be read as
guarantees of future performance or results and will not
necessarily be accurate indications of whether or not such results
will be achieved. Such risks include, but are not limited to, the
risks described in the Company's current annual information form
and management's discussion and analysis, available on SEDAR at
www.sedar.com, which risks may be dependent on market factors and
not entirely within the Company's control. Although management
believes that it has a reasonable basis for the expectations
reflected in these forward-looking statements, actual results may
differ from those suggested by the forward-looking statements for
various reasons. These forward-looking statements reflect current
expectations of the Company as at the date of this news release and
speak only as at the date of this news release. The Company does
not undertake any obligation to publicly update or revise any
forward-looking statements except as may be required by applicable
law.
SOURCE Invesque Inc.