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TORONTO, Oct. 16, 2024 /CNW/ – Alignvest Student Housing Inc. (“ASH“) has recently made headlines with a significant announcement concerning the acquisition of Alignvest Student Housing Real Estate Investment Trust (“ASH REIT“). This move is particularly noteworthy as it involves Forum Asset Management (“Forum“) and a staggering purchase price of $1.686 billion. This amount will be payable in a mixture of cash and units from Forum’s Real Estate Income and Impact Fund (“Forum REIIF“), which provides a substantial premium to the current net asset value of ASH REIT.
Sanjil Shah, Managing Partner of ASH and a Trustee of ASH REIT, elaborated on the transaction’s benefits. He expressed excitement about delivering an attractive return for unitholders, emphasizing a tax-deferred rollover option for those who want to transition into units of Forum REIIF. This deal not only secures a financial return but also allows unitholders to remain integrated within a sector that has shown resilience and high demand: Canadian student housing.
Expanding on this sentiment, Reza Satchu, Managing Partner at Alignvest Management Corporation (“AMC“), highlighted the importance of the collaborative relationship built with Forum’s leadership. The acquisition includes nearly 10,000 student beds, positioning it to become the largest student housing platform in Canada. This scale is expected to deliver efficiencies and growth opportunities through access to Forum’s extensive development pipeline. Notably, AMC has committed to rolling 100% of its units in ASH REIT, translating to over $50 million into Forum REIIF, showcasing significant confidence in the new partnership.
Meanwhile, Nancy Lockhart, Chair of the Board of Trustees at ASH REIT, called the acquisition an “exceptional outcome” for ASH REIT’s unitholders. The Board’s unanimous recommendation to approve the transaction indicates a strong belief in its long-term benefits. This approval will set the stage for a transformative phase in the realm of student housing investments in Canada.
Closing Timeline and Next Steps
The successful conclusion of this transaction is anticipated by the end of 2024, contingent upon meeting typical closing conditions and acquiring necessary regulatory approvals. Following this, ASH REIT unitholders will receive an Information Circular detailing a fairness opinion from BMO Capital Markets, leading to an upcoming vote on the transaction.
About Alignvest Student Housing Real Estate Investment Trust
Since its inception in 2018, Alignvest Student Housing Real Estate Investment Trust has aimed to streamline the fragmented Canadian market for purpose-built student accommodations. Over the years, ASH REIT has assembled a robust portfolio consisting of 17 properties with a total of 7,159 beds, strategically located across key university markets in Canada.
Regulated as an unincorporated open-ended real estate investment trust under Ontario laws, ASH REIT allows for continuous offering of trust units to accredited investors seeking exposure in this niche but growing sector. The units are marketed through a private placement basis via qualified dealers, with arrangements in place to facilitate access about investment opportunities through Fundserv.
For interested investors seeking information on Alignvest Student Housing REIT, more details are available at: www.alignveststudenthousing.com.
About Forum Real Estate Income and Impact Fund
Forum Real Estate Income and Impact Fund takes a comprehensive approach by primarily investing in high-quality residential properties, including multi-family rental apartments, purpose-built student housing, and furnished rentals. The Fund is especially focused on markets within Canada that demonstrate supply constraints, enhancing the stability and long-term viability of investments while being committed to an ESG-driven portfolio.
More information on the Forum Real Estate Income and Impact Fund can be found at: www.forumreiif.ca.
The presented information is based on ASH REIT’s market analysis and should not be construed as research or investment advice. Recommendations to buy or sell any securities or follow specific investment strategies are not included, nor is any such offer authorized in jurisdictions prohibited by law or in conflict with local regulations. Any investment proposal will solely occur through an offering memorandum on a private basis.
SOURCE Alignvest Student Housing REIT
FOR FURTHER INFORMATION PLEASE CONTACT: Sanjil Shah, Managing Partner, Alignvest Student Housing Inc., (647) 749-5005 or [email protected]