- What Sienna Senior Living has agreed to buy Hazeldean Gardens Retirement Residence
- Why Sienna forecasts a 6.8% yield in the year following closing
- What next The company has more properties under contract
Sienna Senior Living has inked a purchase agreement to acquire Hazeldean Gardens Retirement Residence, near Ottawa, for $85m in cash. The price works out to nearly $500,000/unit.
Sienna is buying the property from a local family business. The deal is expected to close within 60 to 75 days.
Hazeldean Gardens is a 172-suite retirement residence at 6130 Hazeldean Road in Stittsville, Ont. It has 129 independent-living, 31 assisted-living and 12 memory-care units.
The price includes a performance-based payment of $3.8m and is subject to an additional performance-based contingent payment of $1.3m. Sienna is acquiring Hazeldean Gardens at an investment yield of 6.33% and forecasts a 6.8% yield in the year following closing.
Hazeldean Gardens was built in 2018. It is at 90% occupancy and close to stabilization.
Sienna has a number of properties under contract or in advanced stages of negotiation. Earlier this year, Sienna agreed to purchase Wildpine Residence, in Ottawa, for $48m and Cawthra Gardens, in Mississauga, for $32.6m. The company is expected to close on the properties in mid-2025 and early 2026, respectively.
The firm also has completed multiple acquisitions so far this year. On Feb. 28, Sienna increased its ownership to 100% in Nicola Lodge, at 2240 Hawkins Street, Port Coquitlam, B.C., for $26.5m. On April 1, the company acquired four continuing-care homes in Alberta for $181.6m.
Sienna has established an at-the-market program that allows the company to issue up to $125m of common shares. It intends to use the net proceeds for future investments, including acquisitions, developments or redevelopments.
