Amica Mature Lifestyles Inc. recently announced that the Company has secured its tenth 99-year contract to manage “Amica at Aspen Woods”, located in Calgary, Alberta. The project will consist of approximately 147 suites and the costs of the project are projected to be over $40 million and the development will include a full suite of amenities and luxury facilities. The project is situated on 2.45 acres in the affluent neighborhood of Aspen Woods, the location is near downtown Calgary and enjoys views of the Rocky Mountains to the west.
One of the more interesting aspects is the disclosure in the press release about the financial benefits that the company will earn through its involvement in the project through the course of its management.
“During the design and construction phase of the development, Amica will earn design and marketing fees totaling approximately $990,000. The Company will also receive a marketing bonus based on the number of suites leased during the first year of operation. Under its 99-year management agreement, Amica will earn a base management fee of 6% of gross revenues and an annual profit participation of 25% of any net operating income in excess of an 8.5% unlevered return on total capital cost. This threshold remains fixed for the entire 99-year term of the contract.”
For the full press release, click here.