NexLiving Communities has agreed to acquire a multi-family property portfolio in Ontario and Quebec from Devcore for $224 million in cash and debt.

The deal covers 991 units and is part of an ownership combination between Gatineau, Que.-based apartment developer Devcore and Halifax-based investor NexLiving.

If all goes according to plan, NexLiving will almost double its portfolio to 2,157 units and Devcore will retain 2,000 suites. NexLiving currently owns 1,166 units in New Brunswick and Ontario.

“This transaction represents a pivotal moment for both NexLiving and Devcore,”: said Jeff York, a Devcore Principal in a news release. “We see great value in NexLiving’s Atlantic Canada portfolio and we believe that there is additional upside to unlock by scaling the platform.”

Devcore is slated to acquire a 49% stake in NexLiving, which will issue 16.5 million shares to its new partner. NexLiving has agreed to assume $166 million of mortgage principal.

The deal is subject to NexLiving shareholder, regulatory and TSX Venture Exchange approvals, along with customary closing conditions. NexLiving’s management team will remain in place but several board changes will occur, with York chairing it and Devcore founder and CEO Jean-Pierre Poulin holding a seat.

York and Poulin would also become controlling shareholders of NexLiving.

Photo: NexLiving