Alignvest launches $65 mln student accommodation REIT

Alignvest Management Corp has launched Alignvest Student Housing Real Estate Investment Trust (ASH REIT) to acquire assets in the Canadian purpose-built student accommodation (PBSA) real estate sector.

ASH REIT has been capitalized with $65 million in investor commitments and will access additional resources from Alignvest, a Canadian alternative investment manager, as well as subsequent offerings. It is slated to buy its first property in Waterloo, Ontario this month.

Alignvest said ASH REIT is positioned to become the largest owner and operator of assets in Canada’s fragmented PBSA sector.

PRESS RELEASE

Successful launch of Alignvest Student Housing Real Estate Investment Trust with demand for units well in excess of targeted first close

TORONTO, July 3, 2018 /CNW/ – Alignvest Management Corporation (“Alignvest”) is pleased to announce the launch of Alignvest Student Housing Real Estate Investment Trust (“ASH REIT”), an investment vehicle focused exclusively on consolidating the highly-fragmented Canadian Purpose-Built Student Accommodation (“PBSA”) real estate sector. ASH REIT has launched with over $65 million of capital commitments. Together with access to substantial additional capital from Alignvest and proceeds raised from subsequent offerings, ASH REIT is well-positioned to acquire high quality PBSA assets and quickly become the largest owner/operator in Canada.

Drew Coles, Chair of the Board of Trustees of ASH REIT, said, “We are pleased with the response of so many investors across Canada who share in our enthusiasm for ASH REIT. We feel positive about surpassing our initial target for the fundraise. This is a testament to the strength of the strategy, our experienced management team and the attractiveness of our offering.”

Alignvest believes there is a unique and attractive opportunity to invest in the PBSA sector in Canada and to become the leading owner/operator of student accommodation properties in Canada. Canadian post-secondary student population growth is greater than many of its global peers, driven by recession-resistant domestic and international student growth. The limited funding available to Canadian universities is decreasing their ability to provide additional beds to service the increase in demand. As a result, there is a unique market opportunity to acquire, build and operate high-quality, institutional-grade PBSA assets across Canada.

ASH REIT is scheduled to close on the purchase of its first PBSA asset at 181 Lester Street in Waterloo, Ontario, in July 2018. This asset is a 455-bed (18 story) high quality purpose-built building that is over 98% leased for the upcoming school year, and strategically located between the University of Waterloo and Wilfrid Laurier University.

ASH REIT is managed by Alignvest Student Housing Inc., the Managing Partners of which are Sanjil Shah and Jonathan Turnbull. The experienced Board of Trustees of ASH REIT is chaired by Drew Coles (former CEO of InnVest REIT, which sold for $2.1 billion in 2016), and includes Robert Wolf (former CFO of RioCan REIT), Reza Satchu (Managing Partner of Alignvest), Sanjil Shah and Jonathan Turnbull.

Reza Satchu, Managing Partner of Alignvest said, “We are excited to bring this investment strategy to Canadian Investors. The low-risk and low market correlation of the strategy combined with the unique upside of the Canadian PBSA market presents an attractive risk/reward proposition for investors.”

ASH REIT will seek to generate attractive returns to investors in what the Trustees and management of ASH believe is a low-risk student housing sector by: (a) acquiring high-quality, newly-built, operating assets in attractive student housing markets; (b) taking advantage of its early-mover position to consolidate the industry at attractive purchase prices; (c) improving the underlying operations of purchased assets; (d) maximizing economies of scale and creating operational savings by integrating the operations of assets; and (e) consolidation and internalization of property management to enhance long-term margins and maximize value realization for investors.

ASH REIT expects to generate returns to investors from both: (a) growing current income (distributed quarterly and, to the extent reasonably possible, tax deferred); and (b) long-term appreciation in value. ASH REIT is targeting an initial annual distribution of approximately 6% ($6.00 to the initial investors based on an initial closing price of $100.00 per unit) and a long-term 15% aggregate annual return inclusive of an anticipated increase in the value of the assets.

About Alignvest Student Housing Real Estate Investment Trust

Alignvest Student Housing Real Estate Investment Trust is an unincorporated open-ended real estate investment trust formed under the laws of Ontario pursuant to a Declaration of Trust to own income-producing purpose-built student accommodations located in Canada. ASH REIT is offering an unlimited number of units on a continuous basis pursuant to an offering memorandum on a private placement basis by qualified dealers to any investors resident in any province or territory of Canada who qualify as “accredited investors”. ASH REIT has made arrangements to offer the units through the investment fund order system, Fundserv.

Visit Alignvest Student Housing Real Estate Investment Trust at www.alignveststudenthousing.com.

About Alignvest Management Corporation

Alignvest Management Corporation is a leading alternative investment management firm that seeks to deliver superior risk-adjusted returns for its clients, which include pension plans, foundations, and ultra-high net worth family offices, by identifying and exploiting market discontinuities, and by attracting the very best talent to build industry-leading investment platforms. The partners of the firm have a strong combination of investment and operational expertise, having created and managed numerous successful operating businesses, and having built and led large, highly profitable businesses within global financial and consulting firms.

Alignvest Management Corporation was formed in 2011 and has raised equity and investment capital from a number of private family offices and institutions. Alignvest Management Corporation’s founding partners have committed to invest over $230 million of their personal capital into funds managed by Alignvest Management Corporation, on a fully discretionary basis, with the capital subject to full recyclability. Alignvest Management Corporation believes that this long term, discretionary, and aligned pool of capital provides the firm with a strong and differentiated foundation.

Alignvest Management Corporation is headquartered in Toronto, Ontario, with an additional office in London, UK.

Visit Alignvest Management Corporation at www.alignvest.com.

The information is based on the market analysis and expectations of ASH REIT and Alignvest and should not be relied upon by the reader as research or investment advice regarding ASH REIT. The information presented herein is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made by means of an offering memorandum on a private placement basis.

For further information: Sanjil Shah, Managing Partner, Alignvest Student Housing Inc., (416) 360-8248 or sshah@alignvest.com