Sienna Expands Retirement Portfolio in Key Ontario Market

Executive Summary

• Sienna Senior Living Inc. entered into a purchase agreement to acquire The Hygate on Lexington, a 216‑suite retirement residence in Waterloo, Ontario, for a gross price of $93.3 million.
• The acquisition is expected to close within 60 days, subject to regulatory and governance approvals, and will be financed with cash on hand and existing credit facilities.
• The Hygate property currently has ~65% occupancy and is projected to reach stabilized occupancy (≈100%) within two years, delivering an estimated 6.0% investment yield for Sienna.

Key Details

• Target Property: The Hygate on Lexington, Waterloo, Ontario – six‑story building built in 2021 with 216 suites (126 independent supportive living units, 40 assisted living units, 50 seniors apartments).
• Additional Land: Includes a 4.7‑acre development site zoned for retirement residence or residential condominium.
• Purchase Price: $93.3 million total, equivalent to approximately $432,000 per suite.
• Financing: Full purchase price to be funded with cash on hand and Sienna’s credit facilities; no external financing disclosed.
• Occupancy & Yield: Current occupancy ~65%; expected to achieve stabilized occupancy within two years of closing, delivering an estimated 6.0% investment yield.
• Closing Timeline: Anticipated closing within 60 days after signing, pending customary regulatory and governance approvals.
• Strategic Rationale: Expands Sienna’s retirement portfolio in the high‑growth Waterloo market, enhances presence in southwestern Ontario, and adds a modern, high‑quality asset to its portfolio.

Notable Quotes

“We are excited to continue expanding our retirement portfolio with this recently built, highly desirable property in Waterloo,” said Nitin Jain, President and Chief Executive Officer. “Hygate will further strengthen our presence in southwestern Ontario and elevate the quality of our asset base in one of Canada’s leading technology and innovation hubs.”