Mr. Michael B. Petersen, Trustee, President & CEO at Levante Living 

Current global uncertainties continue to pose a risk to the future of high net-worth individuals’ wealth. As part of our holistic approach to help preserve your future, we are very pleased to announce our partnership with a Canadian company, Levante Living.

Specializing in the housing and care sector for the elderly, Levante Living Trust allows you to invest in this high-growth sector in Canada, while protecting your assets from the fluctuations of traditional financial markets.

We are delighted to share with you our exclusive interview with Mr. Michael Petersen, President and CEO at Levante Living.

TIMC:  Thank you for this interview, Mr. Petersen! We are excited to offer a new financial alternative to our customers. Could you please introduce Levante Living and its vision?  

MP:  Our vision is to consolidate the senior housing market in Canada and create efficiencies within this field. We aim to provide consistent returns to our investors and enhance the quality of life for a vulnerable and valuable segment of our community: our seniors.

TIMC:  Mr. Petersen, the concept of seniors' residences is not widely used outside of North America, and many of our investors may not fully appreciate the benefits it offers to this valuable and vulnerable segment of our society. Can you explain this concept of senior living, its history and benefits?  

MP: Levante living Trust (The Fund) was created to provide unitholders with indirect exposure to an investment in senior living facilities and related health care businesses in Canada, such as home care and medical service businesses.

The Levante management team has over 30 years of experience in the senior living healthcare sector, including the development, operations and redevelopment of long term care facilities and adult -based residential communities, and over 30 years of experience in financial services. 

TIMC: Does any level of government subsidies help seniors with the cost of staying in such residences?  

MP: The assisted living segment of the Canadian seniors living industry does not receive any level of government subsidies. This segment of the seniors retirement market is based on seniors own or family based financial resources. 

TIMC:  What are the reasons that led you to launch the Levante Living Trust?  

MP: The major reasons that led to our launching Levante Living Trust are:

• the demographic shift and growth in the overall number of seniors in the Canadian population,
• a fragmented market that has led to multiple owners selling multiple properties across the marketplace,
• Approximately half of the senior’s industry operations are privately owned and operated. The majority of the privately owned segment are mom and pop operators, with many looking to retire, creating an acquisition opportunity for operating and cash flowing properties,
• The large corporate owner/operators are consolidating their property portfolios to build larger intercity properties. As a result, there are many mid sized properties in mid sized communities being offered for sale, creating additional acquisition opportunities,
• There are many barriers to entry in the senior’s retirement industry. Levante has a long and successful track record as an owner/operator, with proven licensing history, and extended background in financing. Many individuals and groups try to acquire seniors’ retirement properties but without success. This has lead Levante Living to have a large pipeline of quality mid sized retirement properties for future acquisition,
• Our ability to create ongoing efficiencies within this field via corporate sponsorships and national supply contracts.

TIMC: Our clients are international High Net-Worth Investors looking to protect their financial assets from global uncertainties. With this in mind, how could they possibly benefit from an investment in the Levante Living Trust?   

MP: There are several benefits:

• Participation in Canada’s growing senior living sector
• Access to an industry that has barriers to entry
• Extensive management experience in the senior living sector
• Leverage possible redevelopment opportunities
• Eligible for registered investment plans
• Potential for consistent ongoing wealth creation

It is also important for investors to go for an Inspection Trip to Toronto, to see our senior living facilities for themselves and meet with Levante Living team members, so they can make an well-informed decision.

TIMC: What would be the average return on investment that our clients might expect?

MP: The average annual IRR would be approx. 13%, made up of an annual cash distribution (paid monthly) + an annual tax benefit + a back-end split of profits.

TIMC: Based on the figures in your sector, where do you see the medium to long term outlook for Levante Living and the Trust fund?

MP: We expect in the medium term to grow the Levante Living property portfolio to over 3,000 suites and approx. $400-500 million in AUM.

The long-term outlook has several options;

• Continue as a private operator issuing on going cash distributions and capital growth
• Have a large Pension Fund or Insurance corporation make a premium offer to buy out investors to access our ongoing cash flow
• Work through a large Canadian financial institution to offer an IPO in the public market which will convert unit holders into share holders and provide ongoing liquidity

TIMC: How do you see Levante Living's fit into TIMC's holistic approach to preserving our clients’ future? 

MP: Based on our history and proven track record, plus our goal to provide ongoing service and support to the critical and vulnerable segment of Canadian society, our seniors drive us forward. 

As an enterprise focused on enhancing the quality of life of senior citizens in Canada, Levante Living is proud to partner with a firm (INVICO Capital) that incorporates environmental, social, and corporate governance (ESG) policies into its decision-making and has publicly agreed to adhere to sustainable investment practices. 

Thank you, Mr. Petersen, for this exclusive interview!