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2380 Mountain Rd., in Moncton is being acquired by ViveRE Communities. (Google Maps)
Halifax-based ViveRE Communities Inc. has agreements to purchase four East Coast properties which will increase the size of its portfolio by over 25 per cent. The rapidly expanding multifamily owner and operator says it has a “near-term” acquisition pipeline valued at more than $50 million.
To help fund its most recent purchases, ViveRE is also offering a $9.725 million share offering, including overallotments, through Echelon Wealth Partners Inc. and a syndicate of agents (Editor’s Note: The amount of the offering was updated after this story was published, as ViveRE increased the target amounts). The offering is being made available in Nova Scotia, New Brunswick, Newfoundland and Labrador, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia and Prince Edward Island.
The property acquisitions, which total 142 units, will bring ViveRE’s holdings to 19 buildings and over 530 units.
They are: 51 Noel Ave. in Saint John, N.B.; and three in Moncton, located at 2380 Mountain Rd,, 27 Edmond St. and 50 Maplewood Dr.
About ViveRE’s new acquisitions
The Noel property acquisition was announced a few weeks ago. It is a 47-unit, multifamily building constructed in 2018 with 34 underground parking spaces and is focused on the over-55 active living demographic. It is located adjacent to two of ViveRE’s existing properties at 41 and 50 Noel Ave. ViveRE will pay $11,250,000 for the property, subject to customary adjustments.
The Mountain Road property is a 64-unit multifamily building with 55 underground parking spaces, constructed in 2015, and is also focused on the 55-plus active living demographic. The price for Mountain Road is $12,307,000.
The Edmond Street property is an 18-unit multifamily building constructed in 2003. It is 100 per cent occupied with 55-plus residents and is being acquired for $1,841,500.
The Maplewood property is a 13-unit multifamily building constructed in 1995. It is also fully occupied with 55-plus residents. The price for Maplewood is $1,151,500.
All the acquisitions are subject to customary closing conditions, including the receipt of financing.
Directors approve annual dividend
The equity raise is the second in recent months for ViveRE, which also raised about $2.6 million in August.
ViveRE’s directors have also approved an annual dividend of $0.002 per common share to be paid quarterly commencing in Q1 2021, conditional upon the successful completion of the offering.
ViveRE was formed in 2016, created out of the remnants of a former junior mining company. It bought its first building in 2017, but ramped up its acquisitions during 2019 and has continued making acquisitions through 2020.
The firm focuses on properties servicing the growing 55-plus demographic.
CEO Mike Anaka told RENX in a December 2019 interview ViveRE was hoping to top 500 units by the end of Q3 2020 and that it planned to acquire 500 additional units in each of the following two fiscal years.
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