Sienna Senior Living announced it has finalized the acquisition of a 50 per cent ownership interest in a portfolio of 11 assets located in Ontario and Saskatchewan consisting of 1,048 suites. Sienna acquired the portfolio in partnership with Sabra Health Care REIT.

“We are adding quality residences to our retirement platform and in doing so, have seized a rare opportunity to enhance the growth prospects of our retirement operations, achieve immediate scale in Saskatchewan and expand our portfolio in key locations in Ontario,” said Nitin Jain, President and Chief Executive Officer of Sienna Senior Living. “We are excited to welcome the residents, their families and over 800 team members at our new locations and look forward to offering them a compelling resident and team member experience and a purpose-driven culture.”

Sienna’s share of the purchase price for the portfolio is $153.75 million. The company says it expects the acquisition to generate an approximate 6 per cent unlevered yield in the first twelve months following closing of the transaction. As of April 30, 2022, the occupancy of the portfolio was approximately 87.5 per cent, excluding one property in lease-up that opened in 2019.

The acquisition and related transaction costs were financed through a combination of net proceeds from the company’s March 23, 2022 equity raise; net proceeds from recent dispositions; a one-time drawdown of $90 million on the acquisition term loan;  and the assumption of two CMHC-insured property-level mortgages at a weighted-average interest rate of 2.24 per cent.

For more information, please visit www.siennaliving.ca.