MARKHAM, ON--(Marketwired - September 15, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Sienna Senior Living Inc. ("Sienna" or the "Company") (TSX: SIA) announced today that it has completed the previously announced acquisition of an initial 40% interest in Nicola Lodge, a 256-bed newly-built state of the art seniors living residence located in Port Coquitlam, British Columbia. The purchase price is based on the 100% interest valued at $73.6 million and implies an initial yield of 7.1%. The 40% interest by Sienna was purchased for $27.6 million, after factoring in the option to acquire at a discount to fair market value, before closing costs and subject to customary closing adjustments. The purchase price was partially settled through an assumption of the existing property level mortgage of approximately $18.1 million (representing Sienna's 40% interest), with a term maturing in August 2041 and bearing interest at a rate of 5.0%. The remainder of the purchase price was paid using the Company's available cash.
Concurrent with Sienna's acquisition of its initial 40% interest in Nicola Lodge, Sienna announced today that it has exercised its first option to acquire an initial 40% interest in Glenmore Lodge. Glenmore Lodge, a 118-bed seniors living residence currently under construction in Kelowna, British Columbia, is expected to commence operations in the first quarter of 2017. Sienna expects to complete the acquisition of its initial 40% interest in Glenmore Lodge within 90 days following commencement of operations. The purchase price is based on the 100% interest valued at $32.8 million and implies an initial yield of 7.0%. The purchase price to be paid by Sienna for its 40% interest will be $12.6 million, after factoring in the option to acquire at a discount to fair market value, before closing costs and subject to customary closing adjustments. The purchase price will be partially settled through an assumption of the property level mortgage with an expected value of approximately $8.7M (representing Sienna's 40% interest), an expected term of 15 years and bearing interest at a rate of approximately 4.7%. The remainder of the purchase price is expected to be paid using the Company's available cash.
Sienna has the option to acquire up to a 100% interest in each of Nicola Lodge and Glenmore Lodge, with the purchase price for the initial 50% interest being at a discount to fair market value.
ABOUT SIENNA SENIOR LIVING INC.
Sienna Senior Living (TSX: SIA) owns and operates 54 high-quality seniors living residences in key markets in Ontario and British Columbia, comprising 7,923 beds/suites serving the continuum of independent living, assisted living, long-term care and specialized seniors programs and services. The Company is one of Canada's largest owners of seniors housing, with approximately 8,800 employees dedicated to helping residents live fully, every day. For more information, please visit www.siennaliving.ca.
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 "Risk Factors" section of Sienna's 2015 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.