TORONTO, ON / ACCESSWIRE / October 16, 2024 / Forum Asset Management ("Forum") is pleased to announce that its Real Estate Income and Impact Fund ("REIIF") has entered into definitive agreements to acquire the entirety of Alignvest Student Housing Real Estate Investment Trust's portfolio ("Alignvest") for $1.686 Billion. The transaction, expected to close at the end of 2024, will make REIIF the leading owner of purpose-built student accommodations (PBSA) in Canada. Inclusive of the Alignvest portfolio, REIIF will own and manage nearly 10,500 beds as part of its commitment to deliver institutional-quality properties while serving top university markets across the country. With this increased scale, Forum will expand its PBSA development program, further addressing the growing need for attainable, high-quality student housing in supply constrained markets across Canada.
Strategic Benefits for Alignvest and REIIF Unit Holders
Alignvest unit holders will have the option to roll their investment into REIIF on a tax-deferred basis. This provides Alignvest unit holders exposure to a diversified, new-generation portfolio of PBSA, furnished rentals, and multi-family assets located in Canada's top markets.
REIIF unit holders will gain increased portfolio scale, improved diversification, and expansion into complementary university markets not served by REIIF today. Both REIIF and Alignvest unit holders will also benefit from access to Forum's enhanced $3+ Billion development pipeline as projects are delivered, offering unique growth opportunities through strategically located projects across Canada.
"This combination marks a pivotal step in Forum's journey and is a testament to our team's hard work and dedication in building a leading alternative asset manager," said Richard Abboud, Founder & CEO of Forum Asset Management. "The transaction builds upon Forum's 28-year history of delivering Extraordinary Outcomes™ to our stakeholders, while reinforcing our commitment to delivering much needed, high-quality and professionally managed housing for students across Canada. We look forward to welcoming Alignvest unit holders to our institutional-quality platform."
"Combining REIIF and Alignvest's portfolio creates a leading PBSA portfolio in Canada, broadening REIIF's reach in key university markets, while also enhancing unit holder exposure to a larger proprietary pipeline of high-quality projects located in Canada's top markets, ensuring continued growth of the Fund," added Aly Damji, Managing Partner, Real Estate of Forum Asset Management and REIIF Fund Head. "Our focus on delivering professionally managed, community-driven housing for students reflects our commitment to ensuring students have access to the high quality living environments."
Closing Timeline and Next Steps
The transaction is targeted to close by the end of 2024, subject to customary closing conditions and regulatory approvals. Alignvest unit holders will vote on the transaction in November.
About Forum Asset Management
Forum is an investor, developer and asset manager operating across North America for over 28 years. Our core purpose is to deliver Extraordinary Outcomes™ to our stakeholders. Our adaptable, agile and dynamic team is committed to sustainability and responsible investing, creating value that benefits the communities in which we invest.
Our investment focus includes real estate, private equity, and infrastructure. The enterprise value of our assets under management currently exceeds C$1.7 billion. Our investments have attracted a number of top investors. We're proud to have delivered top tier alternative asset returns since 2002, while positively impacting over 11,000 lives.
About the Forum Real Estate Income and Impact Fund (REIIF)
REIIF invests principally in institutional-quality, multi-family rental apartments, purpose-built student accommodations and furnished rentals located in supply constrained markets in Canada. REIIF also strives to deliver a sector-leading impact and ESG-driven portfolio designed to enhance yields and total returns, with a focus on maintaining diversity and resiliency of income.
About Alignvest Student Housing REIT
ASH REIT was launched in 2018 to consolidate the fragmented, institutional grade, purpose-built student accommodation real estate sector across Canada. Over the past seven years, ASH REIT has built a high-quality portfolio of 17 properties with 7,159 beds across seven university-focused markets.
For more information, please contact:
Lorraine Cardenas, Executive Assistant & Corporate Services, [email protected] 647-618-6981
Sydney MacDougall, Associate Director, Marketing & Communications, [email protected] (416) 388-7939
SOURCE: Forum Asset Management Inc.