Leisureworld Senior Care Corp. Closes Acquisition of Madonna Long-Term Care Residence in Orleans, Ontario
July 17, 2012 at 06:29 pm EDT
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Leisureworld Senior Care Corp. announced that has closed the acquisition of the Madonna Long-Term Care Residence in Orleans, Ontario, following the receipt of regulatory approvals by the Ontario Ministry of Health and Long-Term Care, and the Local Health Integration Network. Built in 2007, the Madonna Long-Term Care Residence is a 160 bed, "A" Class facility, with a current occupancy rate of 99.4% and a 60/40 private/shared accommodation ratio. The purchase consideration for the transaction is $19.9 million, comprised of $13.4 million for the operating business and approximately $6.5 million of construction funding. Incremental expenses for transaction and land transfer costs are approximately $1.1 million. The company will finance the acquisition with a combination of $5.3 million in cash and working capital, and the assumption of $15.7 million in debt, at an all-in rate of 5.2%. The company expects that the integration of the Madonna facility with current operations will present an opportunity to leverage existing infrastructure costs, thereby improving the effective transaction cap rate. The transaction is expected to be accretive to the company's Adjusted Funds from Operations (AFFO) on an annual basis.
Sienna Senior Living Inc. is a Canada-based seniors' living provider. The Company serves the continuum of independent living (IL), independent supportive living (ISL), assisted living (AL), memory care and long-term care (LTC) through the ownership and operation of seniors' living residences in the Provinces of British Columbia, Saskatchewan and Ontario. It offers a full range of seniorsâ living options, including independent living and assisted living under its Aspira retirement brand, long-term care, and specialized programs and services. It owns and operates a total of 81 seniors' living residences: 39 retirement residences, including its joint venture interest in 12 residences in Ontario and Saskatchewan; 34 LTC residences; and eight seniors' living residences providing both private-pay IL and AL and funded LTC, including its joint ownership in two residences in British Columbia. It also offers management services to 11 seniors' living residences in British Columbia and Ontario.