Sienna Senior Living to acquire The Hygate in Waterloo

Executive Summary

• Sienna Senior Living Inc. has entered into a purchase agreement to acquire The Hygate on Lexington, a 216-suite retirement residence located in Waterloo, Ontario.
• The transaction involves a gross purchase price of $93.3 million, with financing expected to come from cash on hand and credit facilities.
• The acquisition is subject to regulatory and governance approvals and is expected to close within 60 days.

Key Details

• Target Asset: The Hygate on Lexington, a six-storey property built in 2021.
• Location: Waterloo, Ontario.
• Property Composition:
  • Total suites: 216.
  • 126 independent supportive living units.
  • 40 assisted living units.
  • 50 seniors apartments.
  • Includes a 4.7-acre development site with municipal zoning for a retirement residence or residential condominium.
• Financial Terms:
  • Gross purchase price: $93.3 million.
  • Price per suite: Approximately $432,000.
  • Stabilized investment yield: Approximately 6.0%.
• Operational Status:
  • Current occupancy: Approximately 65%.
  • Status: Currently in lease-up.
  • Expected stabilized occupancy: Within two years of closing.
• Financing: Full purchase price to be financed with cash on hand and credit facilities.
• Closing Conditions: Subject to regulatory and governance approvals and customary closing conditions.
• Timeline: Expected to close within 60 days.

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."