- What Sienna Senior Living has agreed to buy four properties in Alberta
- Why The deal marks the company’s entry into the province
- What next The deal is expected to close early next year
Sienna Senior Living has agreed to buy four continuing-care homes in Alberta for $181.6m.
The investment marks the company’s first foray into Alberta. The portfolio comprises 540 suites. Three of the properties are fully or nearly fully occupied, and one is in the lease-up phase. They are less than three years of age on average.
Sienna is financing the deal through the assumption of about $150m of CMHC debt. The weighted average interest rate is 4.6%, and the remaining average term is about 4.7 years.
The remainder of the purchase price is funded through proceeds from the company’s recent equity raise.
The deal is expected to close early next year, and Sienna pegged the first-year investment yield at 6.5%.
The properties are: the 126-unit Airdrie Care, near Calgary; the 162-unit Shasta Care, in Edmonton; the 126-unit Fort Saskatchewan Care, in Fort Saskatchewan; and the 126-unit Medicine Hat Care, in Medicine Hat.
