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Leisureworld acquires two luxury retirement residents
April, 2011
Leisureworld Senior Care Corporation recently acquired two luxury retirement residents worth a total $94.8 million. The Royalton retirement residences are both located in Ontario, Kanata (a suburb of Ottawa) and Kingston, respectively. Along with the acquisition of two retirement residences, Leisureworld Senior Care Corporation announced its agreement to sell $40 million of subscription receipts at a price of $10.50 each.
Together the two Royalton properties have 294 suites and are brand new luxury retirement living properties, equipped with quality amenities and in attractive markets. The residences go well with the retirement facilities Leisureworld already owns, further growing its expertise in seniors housing.
David Cutler, President and Chief Executive Officer of Leisureworld says, “The transaction is consistent with Leisureworld’s stated strategy of broadening our products and service offering along with continuum of care.” He adds, “With the acquisition of these properties, we will increase Leisureworld’s asset base by approximately 16 per cent, diversifying our business through expansion in one of the fastest growing segments of the seniors living market.”
Both properties include an income guarantee of $5.5 million for a three-year term to be held in escrow and used by Leisureworld Senior Care Corporation to complement cash flow from the properties in accordance with the acquisition agreement. Leisureworld’s management anticipates a stabilized occupancy within the three-year term.
The Royalton in Kanata, Ontario is a 148,500 square foot, five-storey property with a current occupancy of 41 per cent. With 158 suites ranging from 420 to 1,184 square feet, the units range in size, some even come equipped with full balconies. The facility also has one floor with assisted living for those who need it. On top of the various lounges, dining rooms and fireplaces, the facility has activity areas that include an indoor pool, movie theater and greenhouse.
Kingston, Ontario’s Royalton is 140,000 square feet and five-storey’s high. The current occupancy rate is 51 per cent. Similar to Kanata’s Royalton, the building has 136 suites ranging from 410 to 870 square feet. As well as an indoor pool and movie theater, the Royalton in Kingston has a wellness spa, walking paths with gazebo’s and a putting green.
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