Amica Mature Lifestyles Inc.

Amica Mature Lifestyles Inc.

March 23, 2007 09:30 ET

Amica Announces Its Eighth 99-Year Management Contract

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2007) - Samir Manji, Chairman, President and CEO of Amica Mature Lifestyles Inc. (TSX Symbol:ACC), is pleased to announce that the company has secured its eighth 99-year contract to manage "Amica at Kingston", located in Kingston, Ontario.

Amica at Kingston will be a $38.1 million luxury retirement residence, comprised of 154 suites, including a 28-suite Vitalis™ (assisted living) floor. The five-star residence will include all of the amenities associated with an Amica Wellness & Vitality™ Residence, including a grand lobby, a dedicated home theatre room, an English-style pub, a private dining room, a spa salon and a Wellness & Vitality™ Centre.

Mr. Manji stated, "Amica at Kingston will form part of an exciting, multi-phase development, located on one of the last remaining waterfront properties on King Street West, in the southwestern quadrant of the City of Kingston. The Amica residence will be the first phase of a comprehensive, master-planned development which is proposed to include an Amica residence, market condominiums, a hotel, and a marina."

During the design and construction phase of the development, Amica will earn design and marketing fees totaling $1.57 million. The company will also receive a marketing bonus based on the number of suites leased during the first year of operation. Under its 99-year management agreement, Amica will earn a base management fee of 6% of gross revenues and an annual profit participation of 30% of any net operating income in excess of a 9% unlevered return on total capital cost. This threshold remains fixed for the entire 99-year term of the contract.

Mr. Colin Halliwell, Amica's Chief Operating Officer, commented, "The value of providing quality retirement living will grow with continuing growth in the number of seniors in Canada. Statistics show that, at present rates, the supply of retirement communities will not keep pace with the expected demand. We are excited to become part of the beautiful city of Kingston. Amica at Kingston will allow citizens to enjoy five-star amenities and services in their retirement, close to family and friends, in the community that they helped build."

With a target completion date of summer 2009, Amica at Kingston is the company's 23rd retirement community and its fifth project with its development partner, The Forrest Group.

Amica will have a $1.34 million equity interest in the project, representing a 19% ownership stake, and will provide $2.5 million in mezzanine financing at an interest rate of 10%. Investors will provide the balance of equity. The total equity for this development is $7.0 million.

Amica Mature Lifestyles Inc.

Amica Mature Lifestyles Inc., a Vancouver based public company, is a leader in the management, marketing, design and development of luxury housing and services for mature lifestyles. There are 23 Amica Wellness & Vitality™ Residences, including eight under development. The common shares of Amica are traded on the Toronto Stock Exchange under the symbol "ACC".

Forward-Looking Information

This news release contains forward-looking information within the meaning of the Securities Act (Ontario) (the "forward-looking statements"). Such forward-looking statements including statements relating to the future development of the "Amica at Kingston" Retirement Residence and to the expected financial implications for Amica of that development and its long term management contract in respect thereof, and to expected growth in the number of retired persons and in the demand for residential facilities of the type provided by Amica. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to dependence on the ability of Amica's development partners to meet its obligations; interest rate volatility in the marketplace; job actions including strikes and labour stoppages; possible liability under environmental laws and regulations, relating to removal or remediation of hazardous or toxic substances on properties owned or operated by Amica; risks associated with new developments, including cost overruns and start up losses; the ability of seniors to pay for Amica's services; operational risks inherent in owning and operating residences; the risks associated with global events such as infectious diseases, extreme weather conditions and natural disasters; the availability of capital to finance growth; Amica's ability to attract seniors with its services and keep pace with changing consumer preferences; and other risks and uncertainties, including those described in Amica's Annual Information Form dated August 18, 2006 filed with the Canadian Securities Administrators and available at

Contact Information

  • Amica Mature Lifestyles Inc.
    Mr. Doug Allen
    Chief Financial Officer
    (604) 630-3473
    Amica Mature Lifestyles Inc.
    Ms. Alyssa Williams
    Investor Communications Administrator
    (604) 639-2171