SOURCE: Sienna Senior Living Inc.

Sienna Senior Living Inc.

December 09, 2015 18:39 ET

Sienna Senior Living Inc. to Acquire Traditions of Durham Retirement Residence in Ontario

MARKHAM, ON--(Marketwired - December 09, 2015) - Sienna Senior Living Inc. ("Sienna" or the "Company") (TSX: SIA) announced today that it has entered into a definitive agreement with Durham Retirement Residence Limited Partnership to acquire Traditions of Durham, a retirement residence in Oshawa, Ontario ("Traditions"), for a purchase price of $37 million. The residence is currently among Sienna's managed homes.

"We are pleased to be further expanding Sienna's high quality retirement portfolio, and as the management company for Traditions, we know the residence well and are excited to formally welcome the Traditions team and residents to the Sienna family," stated Lois Cormack, Sienna's President and CEO. "This acquisition is consistent with our strategy to expand our retirement division with quality assets in secondary and tertiary communities."

The closing of the transaction is expected to occur on or about December 31, 2015 and is subject to regulatory approval and customary closing conditions. Sienna intends to finance the acquisition by an assumption of the existing property level mortgage of approximately $22.7 million, maturing in March 2020 and bearing interest at 3.5%. The remainder of the purchase price will be paid in available cash and drawdowns from the Company's credit facilities. The vendor will provide the Company with an annual net operating income guarantee, in accordance with the transaction terms.

Details on the property

Traditions is a 140-suite independent and assisting living residence located in Oshawa that commenced operations in 2010 with a first phase of 90 suites. A further 50 suites were added pursuant to a second phase in 2012. The current occupancy rate is 90.71%. Providing both assisted living services (with 37 suites designated as assisted living units) and independent supported living services, the residence has a strong reputation and high visibility in the local community.

ABOUT SIENNA SENIOR LIVING

Sienna Senior Living (TSX: SIA) is one of Canada's largest owners of seniors housing and the largest licensed long-term care provider in Ontario. The Company's 8,000 employees are dedicated to helping you live fully, every day in each of its four lines of business: retirement living, home care, third party management services and long-term care. The Company owns and operates 35 long-term care homes and 10 retirement residences, representing a combined 6,799 beds/suites across Ontario and British Columbia. For more information, please visit www.siennaliving.ca.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking information based on management's current expectations, estimates and projections about the future results, performance, achievements, prospects or opportunities for Sienna. Forward-looking statements are based upon a number of assumptions and are subject to a number of known and unknown risks and uncertainties, many of which are beyond our control, and that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements. There can be no assurance that forward-looking information will prove to be accurate, as actual results could differ materially from those expected, estimated or implied by such statements. Accordingly, readers should not place undue reliance on forward-looking information. These factors are more fully described in the "Risks and Uncertainties" section of Sienna's 2014 MD&A and in materials filed with the securities regulatory authorities in Canada from time to time, including, but not limited to, the Company's most recent Annual Information Form.

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