Sienna Senior closes Hygate on Lexington acquisition

Executive Summary

• Sienna Senior Living Inc. has completed the acquisition of Hygate on Lexington, a retirement residence located in Waterloo, Ontario.
• The transaction was valued at $93.3 million, representing approximately $432,000 per suite, with a stabilized investment yield of 6.0%.
• The acquisition includes a 4.7-acre development site zoned for future retirement residence or residential condominium development.

Key Details

• Transaction Status: Completed acquisition of Hygate on Lexington.
• Property Specifications:
  • Built in 2021.
  • Six-storey structure.
  • Total of 216 suites.
  • Unit Mix: 126 independent supportive living units, 40 assisted living units, and 50 seniors apartments.
  • Current Status: In lease-up phase.
• Financial Terms:
  • Total Purchase Price: $93.3 million.
  • Price Per Suite: Approximately $432,000.
  • Stabilized Investment Yield: Approximately 6.0%.
  • Valuation Context: Acquired at a discount to replacement cost.
• Additional Assets: Includes a 4.7-acre development site with municipal zoning for a retirement residence or residential condominium.
• Strategic Outlook: CEO Nitin Jain stated the acquisition strengthens Sienna's presence in southwestern Ontario, with a goal to reach stabilized occupancy within the next two years.

Notable Quotes

• "With the addition of Hygate, we continue to strengthen our presence in southwestern Ontario and further elevate the quality of our growing asset base," said Nitin Jain, president and chief executive officer. "We will leverage our extensive experience and market knowledge to reach stabilized occupancy at this highly desirable property within the next two years."