Sienna buys Ottawa retirement home for millions
Sienna Senior Living has bought a 305-unit Ottawa retirement home for $170.7 million, representing its fifth purchase in Ontario this year. The property, Stonemont on the Park, is about 99 per cent occupied, Sienna stated.
The acquisition expands Sienna’s retirement platform in a key market, Nitin Jain, Sienna’s president and CEO, said. “With the addition of Stonemont, we are further expanding Sienna’s retirement platform in a key market,” he added.
Stonemont on the Park features amenities such as a salon and spa, heated pool, fitness centre, on-site cinema, bar/bistro lounge, and a tuck shop. The purchase price breaks down to $560,000 per suite.
Acquisition Details
The transaction includes an additional $10-million earnout, contingent upon exceeding certain financial targets. Sienna intends to finance the acquisition with available cash on hand and its credit facilities.
The Stonemont transaction is expected to close in Q4. This acquisition is part of Sienna’s larger expansion in Ontario, where it has completed or signed agreements to purchase four other seniors residences this year.
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Other acquisitions in Ontario announced this year include The Bartlett in Oshawa, Rockland Manor in Rockland, and Ballycliffe in Ajax. In January, Sienna acquired an additional 10.9 per cent interest in LaSalle Park, a retirement residence in Burlington.
Joint Venture and Redevelopment
Sienna and Fiera Infrastructure recently announced a $625-million joint venture to accelerate long-term care developments. Nitin Jain noted that Sienna’s redevelopment program in Ontario focuses on modernizing older long-term care communities and increasing capacity in the system.
In Ontario, there are over 50,000 people on the waitlist for a long-term care bed, Jain said. He added that the Ontario government’s changes to the construction funding model for long-term care redevelopments have made it financially feasible for Sienna to move forward with redevelopments in the GTA.
Long-term care represents about half of Sienna’s portfolio of 107 communities. The company continues to build on this momentum with a strong acquisition pipeline and its joint venture partnership with Fiera Infrastructure.
Sienna Senior Living is a Canadian owner, operator, and developer of senior housing real estate, and the only publicly traded senior living company to own and operate in both retirement living and long-term care.
