Amica Mature Lifestyles Inc.

Amica Mature Lifestyles Inc.

January 19, 2012 16:13 ET

Amica Mature Lifestyles Announces Completion of Acquisition of Luxury Retirement Residence and Issuance of Common Shares

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 19, 2012) -


Amica Mature Lifestyles Inc. ("Amica" or the "Company") (TSX:ACC) announced today that it has completed its previously announced acquisition of the Quinte Gardens retirement residence located in Belleville, Ontario (the "Acquisition"). The Acquisition further strengthens Amica's portfolio of luxury Wellness & Vitality™ communities and expands its presence in the Ontario marketplace.

The purchase price of the Acquisition is $70.5 million and includes $2.25 million to be held in escrow as an income guarantee. Quinte Gardens is currently at approximately 79% occupancy, including short-term stay residents. During the lease-up period for Quinte Gardens, Amica may draw on this income guarantee fund to supplement the property's income until the earlier of reaching an agreed monthly stabilized net operating income for three consecutive months and 24 months after the closing of the Acquisition. At the end of the term of the income guarantee fund any remaining funds will be paid to the vendor. The purchase price was funded by a $48.3 million, five year open mortgage with interest at prime plus 0.5% and a portion of the net proceeds from the Company's recently completed public offering bought deal of subscription receipts (the "Offering"), which raised gross proceeds of approximately $34.3 million (including the exercise in full of the over-allotment option). The Company has now issued 4,600,000 common shares in exchange for the subscription receipts.

Based on the stabilized net operating income agreed to with the vendor for purposes of the income guarantee fund, the capitalization rate on the transaction is approximately 8.0%.

For further details of the Offering and the Acquisition see the short form prospectus of the Company dated December 7, 2011, available on SEDAR at

The securities offered pursuant to the subscription receipt offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.


Amica Mature Lifestyles Inc., a Vancouver based public company, is a leader in the management, marketing, design, development and ownership of luxury housing and services for mature lifestyles. There are 25 Amica Wellness & Vitality™ Residences, including an acquisition that the Company is transitioning to rebrand, one under development and one in pre-development. The common shares of Amica are traded on the Toronto Stock Exchange under the symbol "ACC". For more information, visit


This news release contains "forward-looking information" within the meaning of applicable securities laws ("forward-looking statements").

These forward-looking statements are made as of the date of this news release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as otherwise required by law. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to, statements about rebranding acquired property to an Amica Wellness & Vitality™ Residence, the amount of stabilized net operating income for Quinte Gardens and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and assumptions include, amongst others, the effects of general economic and market conditions, actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgements in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include, among others, risks related to: capital markets; cost overruns, delays and start-up losses for new real estate developments; the availability of capital to finance growth or refinance debt as it comes due; the ability of seniors to pay for Amica's services; Amica's ability to attract seniors with its services and keep pace with changing consumer preferences; risks inherent in the ownership of real property; operational risks inherent in owning and operating residences; dependence on the ability of Amica's co-tenancy participants to meet their obligations; interest rate volatility in the marketplace; regulatory changes; 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; the risks associated with global events such as infectious diseases, extreme weather conditions and natural disasters; foreign exchange rate volatility; as well as those factors discussed in Amica's Annual Information Form dated August 12, 2011, filed with the Canadian Securities Administrators and available at, in the "Risk Factors" section of the Company's Short Form Prospectus dated December 7, 2011 and in the "Risks and Uncertainties" section of the Company's management's discussion and analysis for three and six months ended November 30, 2011, available at Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements, or the material factors or assumptions used to develop such forward looking statements, will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements.

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