MARKHAM, ON--(Marketwired - March 15, 2017) -
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 acquisition of a 61% interest in Glenmore Lodge, a 118-bed newly-built state of the art seniors living residence located in Kelowna, British Columbia. The interest was purchased by Sienna for $19.5 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 is based on the 100% interest valued at $32.9 million and implies an initial yield of 7.0%. The purchase price was partially settled through an assumption of the existing property level mortgage of approximately $13.2 million (representing Sienna's 61% interest), with a term maturing in April 2032 and bearing interest at a rate of 4.7%. The remainder of the purchase price was paid using the Company's available cash.
Sienna has the further option to acquire the remaining 39% interest in Glenmore Lodge at fair market value on the earlier of (i) the agreement of the parties, and (ii) following the tenth anniversary of the closing of this first option.
ABOUT SIENNA SENIOR LIVING INC.
Sienna Senior Living (TSX: SIA) is one of Canada's leading seniors living providers serving the continuum of independent living, independent supportive living, assisted living, memory care and long-term care/ residential care through the operation of its 56 residences. We are committed to national growth, while driving long-term value creation for our shareholders. Our 9,000 employees are 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 2016 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.