Invesque Announces US$93 Million Sale of Five Property Portfolio
Toronto, Ontario, November 16, 2021 – Invesque Inc. (the “Corporation” or “Invesque”) (TSX: IVQ and 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.
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.
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