Sienna Senior Living Finalizes Ottawa Acquisition for $48 Million
Deal News | Apr 16, 2025 | Globenewswire
Sienna Senior Living Inc., based in Ontario, has successfully completed the acquisition of a 165-suite retirement residence, Wildpine Residence, in Ottawa for a gross purchase price of $48.0 million. The deal forms part of Sienna's strategic expansion in the Ottawa market, bolstering its portfolio of senior living options that include independent living, assisted living, and memory care under its Aspira retirement brand. The acquisition was financed by assuming CMHC-insured debt of approximately $25.2 million, with an interest rate of 3.69% and a remaining term of 7.4 years, alongside cash on hand. This transaction brings Sienna's total acquisitions for 2025 to over $250 million. The company expects the newly acquired residence to yield an investment return of approximately 6.25% within the first year and create synergies with other nearby properties, enhancing its operational efficiency. Additionally, the acquisition was completed at a significant discount to replacement cost, promising to be accretive to Sienna's AFFO per share.
Sectors
- Senior Living and Care
- Real Estate Investment
Geography
- Canada – Sienna Senior Living is based in Ontario, and the newly acquired retirement residence is located in Ottawa, Ontario, Canada.
- Ontario – The transaction involves a residence located in Ottawa, Ontario, and the company is headquartered in Markham, Ontario.
Industry
- Senior Living and Care – The industry includes various types of residential care facilities providing assistance and healthcare services to seniors. Sienna operates within this sector offering independent and assisted living options.
- Real Estate Investment – The acquisition of a retirement residence falls within the real estate investment sector, highlighting Sienna's strategic expansion and management of real estate assets aimed at increasing investment returns.
Financials
- $48.0 million – Gross purchase price for the acquisition of Wildpine Residence.
- $25.2 million – Debt assumed with an interest rate of 3.69% and a remaining term of approximately 7.4 years.
- 6.25% – Expected investment yield from the operations of Wildpine Residence in the first twelve months.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Sienna Senior Living Inc. | Acquirer | Company | Sienna Senior Living Inc. offers a range of senior living options and services in Canada, expanding its operations with strategic acquisitions. |
| Wildpine Residence | Target | Company | Wildpine Residence is a 165-suite retirement residence in Ottawa acquired by Sienna as part of its expansion strategy. |
| David Hung | Chief Financial Officer and Executive Vice President, Investments | Person | David Hung is responsible for the financial operations and investment strategy at Sienna Senior Living Inc. |