TORONTO, Nov. 16, 2021 /CNW/ - Invesque Inc. (the
"Corporation" or "Invesque") (TSX:
IVQ)(TSX: IVQ.U) announced today that it has sold a
five-property portfolio to The Ensign Group ("Ensign"), for
a total sale price of US$93.0 million
(the "Transaction"). The Transaction included a
four-property skilled nursing portfolio with 436 beds operated by
Ensign and a 144-bed assisted living community operated by The
Pennant Group ("Pennant") (collectively, the
"Portfolio"). The Portfolio is located in California, Kansas, and Arizona, and the properties were previously
subject to long term triple-net leases.
The Portfolio sold to Ensign was part of Invesque's Jaguarundi
Ventures, LP joint venture (the "Jaguarundi JV") between
Invesque and Magnetar Capital ("Magnetar"), of which the
Corporation owns an approximately 65% ownership interest.
The Portfolio sale price provides Jaguarundi JV with
approximately US$22 million of net
proceeds after the repayment of outstanding debt and transaction
costs. The Portfolio sale price represents an attractive
capitalization rate of 7.2%.
As a result of the Transaction, neither Invesque nor Magnetar
has an ongoing ownership interest in the Portfolio. Additionally,
Ensign and Pennant no longer operate any communities owned by
Invesque.
"This portfolio sale is another step in executing our active
portfolio management plan. The strategic disposition, at extremely
favorable pricing, will help us strengthen our platform with
reduced leverage, increased liquidity and will provide a portion of
the paydown of the debenture in January. As part of our portfolio
management strategy, we constantly evaluate our portfolio and
selectively exit assets to streamline our focus and to allocate
capital to create maximum value for our stakeholders," said
Scott White, Chairman & Chief
Executive Officer of Invesque.
BMO Capital Markets acted as financial advisor to Invesque in
connection with the sale of the Portfolio.
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 highly diversified 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. For more information, please visit www.invesque.com.
Forward Looking Information
Certain statements contained in this news release are
forward-looking statements and are provided for the purpose of
presenting information about management's current expectations and
plans relating to the future, including the allocation of capital
to create maximum value for shareholders. Readers are cautioned
that such statements may not be appropriate for other purposes. In
some cases, forward-looking information can be identified by such
terms as "will", "would", "anticipate", "anticipated", "expect",
"expected" and other similar expressions. The forward-looking
statements in this news release are based on certain assumptions.
Such statements are subject to significant known and unknown risks,
uncertainties and other factors that 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
Corporation'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 Corporation'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 Corporation as at the date of this news release and speak only
as at the date of this news release. The Corporation 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.