Amica ups stake in Westboro retirement home

Default image

Amica Mature Lifestyles has agreed to acquire an additional 73.5 per cent aggregate ownership interest in Amica at Westboro Park, a retirement community.

The total purchase price will be $30.72 million, which includes cash consideration of $7.35 million, taking on the vendors' portion of a mortgage, and other net liabilities that total about $23.37 million.

When this closes around June 1, it will increase Amica's stake in the retirement home to 87.5 per cent.

"We are pleased with the financial performance of Amica at Westboro Park and we look forward to adding (the community) to our growing list of consolidated properties," stated Amica Mature Lifestyles CEO Samir Manji.

The four-year-old community has 137 suites. Based on the project fiscal net operating income for 2013, Amica estimates the cap rate to be paid on this transaction will be about seven per cent now, and will be 7.5 per cent when occupancy reaches 95 per cent. (Occupancy is expected to be 84 per cent at the end of April.)

Vancouver-based Amica will fund the purchase in part through the sale of 2.75 million common shares at a price of $9 each to Canaccord Genuity Corp. and a syndicate of underwriters.