Amica Mature Lifestyles Inc.

Amica Mature Lifestyles Inc.

January 04, 2011 08:00 ET

Amica Mature Lifestyles Increases Ownership in Amica at Newmarket and Amica at Villa Da Vinci

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 4, 2011) - Amica Mature Lifestyles Inc. ("Amica" or the "Company") (TSX:ACC), a leader in the management, marketing, design, development and ownership of luxury housing and services for mature lifestyles, is pleased to announce the acquisition of additional ownership interests in Amica at Newmarket and Amica at Villa Da Vinci.

Amica has completed the acquisition of an additional 40% interest in Amica at Newmarket (located in Newmarket, ON), bringing the Company's ownership position to 56% and has completed the acquisition of an additional 37.5% interest in Amica at Villa Da Vinci (located in Vaughan, ON), bringing the Company's ownership position to 100%. The effective date for both acquisitions is December 31, 2010. 

Subject to post-closing and accounting adjustments, the aggregate purchase price for these acquisitions was approximately $17.97 million (Amica at Newmarket $11.73 million; Amica at Villa Da Vinci $6.24 million), including: cash consideration on closing of $1.99 million; $1.05 million in non-interest bearing promissory notes payable in three annual installments on December 31, 2011, December 31, 2012 and December 31, 2013; $1.13 million for the repayment of an outstanding loan due from the vendors to Amica; and the assumption of the vendors' share of mortgages and loans payable on the properties of $13.38 million (Amica at Newmarket $9.61 million; and Amica at Villa Da Vinci $3.77 million) and $0.42 million in other net liabilities.

Samir Manji, Amica's Chairman, President and Chief Executive Officer, stated, "Increasing our ownership position in these two communities reflects continued execution of Amica's shift in strategy announced in August 2010 when we increased our ownership positions in Amica at West Vancouver and Amica at City Centre. While we continue to maintain our brand manager business model, we are simultaneously focusing on increasing our ownership position in some of our mature communities to enable us to strengthen our asset base and benefit from the revenues, operating results and cash flow generated by these communities. We look forward to continuing to focus on the execution of our plan, both in our efforts to increase our ownership in existing mature Amica communities and evaluating external acquisition opportunities."

Amica at Newmarket (completed in 2006) has a total of 137 suites and is currently at 88.1% occupancy. Amica at Villa Da Vinci (completed in 2001) has a total of 124 suites and is currently at 90.2% occupancy. Based on estimated net operating income at stabilized occupancy, the Company estimates that the cap rate paid was 7.6% on Amica at Newmarket and 7.3% on the Amica at Villa Da Vinci acquisitions. Both communities have existing CMHC insured mortgages in place with interest rates of 4.34% (matures June 2013) for Amica at Newmarket and 4.56% (matures December 2013) for Amica at Villa Da Vinci.

Selected historical pre-tax financial results for Amica at Newmarket and Amica at Villa Da Vinci for the years ended May 31, 2010 and May 31, 2009 are as follows: 

    Amica at Newmarket Amica at Villa Da Vinci (1)
    Expressed in thousands of Canadian dollars
    Year ended   Year ended Year ended   Year ended
    31-May-10   31-May-09 31-May-10   31-May-09
Revenue   $6,017   $6,085 $4,284   $4,349
Net loss   ($341)   ($64) ($253)   ($107)
Cash flow from operations   $773   $1,100 $314   $393
(1) Figures are before consolidation adjustments.

About Amica Mature Lifestyles Inc.

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 three in pre-development. The common shares of Amica are traded on the Toronto Stock Exchange under the symbol "ACC". For more information, visit

Forward-Looking Information

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 regarding the Company's growth prospects; anticipated future financial results; occupancy levels and operating income; 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 to differ materially from future results expressed or implied by such forward-looking statements. Such factors and assumptions include, amongst others, the effects of general economic 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 dependence on the ability of Amica's co-tenancy participants to meet their 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; regulatory changes; risks inherent in the ownership of real property; 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 or refinance debt as it comes due; Amica's ability to attract seniors with its services and keep pace with changing consumer preferences, as well as those factors discussed in Amica's Annual Information Form dated August 11, 2010, filed with the Canadian Securities Administrators and available at and in the "Risks and Uncertainties" section of the Company's management's discussion and analysis for the three month period ended August 31, 2010 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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