SOURCE: LifeHouse Retirement Properties Inc.

March 07, 2006 08:46 ET

LifeHouse Retirement Properties, Inc. Acquires Golden Acres Assisted Living Community

LOS ANGELES, CA -- (MARKET WIRE) -- March 7, 2006 -- LifeHouse Retirement Properties, Inc. (OTC: LHRP) is excited to announce it closed on the purchase of the Golden Acres Christian Living Assisted Care for the Elderly community, located in Fennville, Michigan, on February 16, 2006. The acquisition included the Golden Acres 40 unit private-pay assisted living community and an additional 40 acres of land for further development.

The Golden Acres facility was purchased for $3.25 million or approximately $71,250 per unit, excluding the excess land value estimated at approximately $400,000. 2005 Annualized EBITDA, based on year-to-date operating results through August 2005, was $300,000. Management expects the Golden Acres facility to generate over $430,000 of EBITDA upon stabilization (calculated based on 95% occupancy within the next twelve months), which implies a pro forma Capitalization Rate of 13.2%.

Mr. Lou Andriotti, COO of LifeHouse Retirement Properties, Inc, explained that, "There were numerous bidders on this magnificent property that sprawls over 40 acres with lakes and abundant wildlife. It's known in Western Michigan's Lakeshore area as the Taj Mahal of assisted living communities because of its fine dining ambiance, gourmet kitchens, resident household homelike designs, spa and other amenities, and numerous features only found in five-star resort properties. However, the highly selective owners, who were more interested in personalized services for senior adults than deal terms, decided to sell to LifeHouse because of our strong commitment to quality excellence, human and organizational learning systems that empower employees to be servant leaders, and the cornerstone values of the LifeHouse organization."

Andriotti further stated that, "Plans are underway to add a memory care building with a homelike feel and further develop the campus to meet the needs of the local community. The Company feels it is important to obtain public input into the design for the place that many community seniors will call home in the future. I think this shows we care and have a caring attitude for the people and the communities we serve.

"This new project will be designed specifically to serve the needs of our residents with memory-related complications. Design work will include an additional new Alzheimer's building. The building will be a one-of-a-kind memory care building designed with specific housing cues familiar to the Fennville/Holland, Michigan, area with porches and porticos customary to the homes and elements of the homes (memory jogging symbols) that our community members identified with during the earlier years of their lives. We will provide accommodations and services for 20 residents with 16 private rooms and 2 semi-private rooms. We anticipate to be occupying the building in late 2007 or early 2008."

This acquisition brings the total number of LifeHouse-owned and operated communities to eight. The Company has letters of intent to purchase two additional private-pay assisted living communities and is working to close on these in the first quarter of 2006.

LifeHouse Retirement Properties, Inc., is focused on strategic acquisitions of senior assisted and independent living facilities in the U.S. The Company's platform provides a strong acquisition team with significant experience in investment banking, finance, and transaction completion; and a high-performance operating team with proven effectiveness in human and organizational systems, health care, hospitality, construction, and real estate, particularly effective in turnaround operations of underperforming properties or entire business units and launching of start-up companies and new brand extensions. The Company owns and operates eight communities and has approximately 600 units and 500 full-time and part-time employees.

Forward-Looking Statements: The information contained herein should not be construed as a recommendation to purchase any securities. Statements in this news release concerning the company's business outlook or future economic performance, anticipated profitability, revenues, expenses, or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties, and factors include, but are not limited to, future capital needs, changes and delays in development plans and schedules, acquisition risks, licensing risks, business conditions, competition, changes in interest rates, our ability to manage our expenses, market factors that could affect the value of our properties, the risks of downturns in general economic conditions, availability of financing for development and acquisitions. Investments in small cap companies are generally deemed to be highly speculative and to involve substantial risk, making it appropriate for readers to consult with professional investment advisors and to make independent investigations before acting on the information.

Contact Information

  • Contact:
    Gordon Wolf
    Investor Relations
    LifeHouse Retirement Properties Inc.
    Phone: (508) 993-5320
    Fax: (508) 997-2169