Sienna Senior Living announced it has entered into an agreement to acquire a 50 per cent ownership interest in a portfolio consisting of eleven assets located throughout Ontario and Saskatchewan. Featuring 1,048 high-quality, private-pay suites, Sienna will acquire the portfolio in partnership with Sabra from seller Extendicare Inc.
According to Sienna, the portfolio represents an attractive expansion opportunity in the Ontario market as it consists of high-quality, recently built retirement residences; it also provides the growing company an entry into the Saskatchewan market with immediate scale and a platform for further expansion. With an average building age of approximately six years, the portfolio offers modern seniors living accommodation with extensive amenities reflecting the changing lifestyle preferences of seniors. Suites come with a range of supports, allowing for independent living (“IL”) and opportunities to age in-place with memory care (“MC”) suites.
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.
“Today’s announcement marks an important acquisition by Sienna and supports our outlook for the company going forward,” said Nitin Jain, President and Chief Executive Officer of Sienna. “Sienna has invested significant resources during the COVID-19 pandemic to ensure the safety and well-being of our residents and staff. We are excited to enter into the Saskatchewan market and expand our Ontario footprint, welcome new team members and residents, and integrate high quality assets within the Sienna platform, and we look forward to the enhanced quality and growth prospects they will bring to our retirement business. In addition, our strategic joint venture with Sabra through this transaction is expected to be an additional source of future growth for the Company.”
For more information, click here: Sienna Living – Retirement Homes & Long Term Care – Ontario & BC
