NexLiving Communities has completed its acquisition of a multi-family property portfolio in Ontario and Quebec from Devcore and a related Canadian numbered company for $224 million in cash and debt.

Halifax-based NexLiving announced Tuesday that the transaction has closed. NexLiving agreed earlier this year to acquire the assets, which comprise 16 properties and 991 units.

The purchase is part of an ownership combination involving NexLiving, Gatineau, Que.-based Devcore and 8985979 Canada Inc., known as 898.

“This acquisition nearly doubles our portfolio and positions us to further enhance free cash flow and strengthen our balance sheet,” said Stavro Stathonikos, NexLiving’s president and CEO, in a news release. “With Devcore as our long-term partner, we are confident in the strength of our combined team to lead in Canada’s high-growth secondary markets.”

In April, NexLiving said the deal would expand its overall portfolio to 2,157 units. NexLiving previously owned 1,166 units in New Brunswick and Ontario. Devcore has retained 2,000 suites in Quebec.

Devcore and the numbered company acquired a 49% stake in NexLiving, which issued 16.5 million shares to the new co-owners while assuming $166 million of mortgage principal.

NexLiving’s management team will remain in place, but several board changes have occurred.

Jeff York, a Devcore principal, has appointed chairman of the board; meanwhile, Jean-Pierre Poulin, Devcore’s founder and CEO, holds a seat. Rick Turner has been appointed as vice-chairman after previously chairing the board.

York and Poulin have also become controlling shareholders of NexLiving through the numbered company.

Photo: NexLiving