- What Sienna Senior Living will purchase a Mississauga residence for $60.2m
- Why The building is 90% occupied with an anticipated initial yield of 5.75%
- What next The deal is expected to close within 60 days
Sienna Senior Living has agreed to purchase a 133-unit retirement residence in Mississauga for $60.2m.
The valuation for Credit River Retirement Residence, at 175 Rutledge Road, is roughly $453,000/unit with an initial yield of 5.75%. The purchase will be financed in full via Sienna’s credit facilities and is expected to close within 60 days.
The property, built in 2016, comprises 84 independent-living, 25 assisted-living and 24 memory-care units, as well as fitness facilities, a movie theatre, dining rooms and a terrace. It is currently operated by Toronto-based Verve Senior Living.
The building is 90% occupied, with Sienna projecting it can boost that to 95% within the first year.
Sienna is a publicly traded senior-housing provider based in Markham. It is one of Canada’s largest senior-housing operators, with 93 properties across Ontario, British Columbia, Alberta and Saskatchewan.
The firm has been active this year, inking an $85m deal in May to purchase the Hazeldean Gardens Retirement Residence near Ottawa, and agreeing in February to spend $80.6m combined for Wildpine Residence in Ottawa and Cawthra Gardens in Mississauga.
