Amica Mature Lifestyles Inc., a Canadian senior living developer and operator, has announced the acquisition of additional ownership interest in Amica at Bayview and the completion of refinancing for Amica at The Balmoral Club and Amica at Swan Lake. Amica will complete the acquisition of an additional 51.5% interest in Amica at Bayview (located in North York, ON), bringing the Company’s ownership position to 66.5% on March 31st for a purchase price for the acquisition is approximately $20.1 million, including: cash consideration on closing of $7.7 million, and the assumption of the vendors’ share of mortgages payable on the property of $12.4 million. Amica at Bayview, completed in July 2003, has a total of 140 suites and is currently at 93.5% occupancy and is financed through an existing Canada Mortgage and Housing Corporation (“CMHC”) insured mortgage.
Samir Manji, Amica’s Chairman, President and Chief Executive Officer, stated, “We are very excited to add Amica at Bayview to our growing portfolio of consolidated communities as part of our internal consolidation strategy. We anticipate that this flagship luxury retirement residence will be a key, long term contributor to our financial performance and will immediately, upon closing, contribute to strong growth in our revenues, cash flow and funds from operations.”
Late last month, Amica completed the refinancing for Amica at The Balmoral Club and Amica at Swam Lake. The Amica Balmoral property was refinanced with a 5 year, loan at 3.46% for $6 million and Amica at Swan Lake completed the placement of a new $16.5 million loan at an interest rate of prime plus 0.75%
Art Ayres, Amica’s Chief Financial Officer, stated "These refinancings provide a significant reduction in our debt service costs, which will contribute towards improving our cash flow from operations and funds from operations going forward. The Amica at Swan Lake refinancing was particularly attractive in that we not only benefitted from a substantial discount in the price paid for this mortgage, but also dramatically reduced our borrowing cost on the new mortgage secured."