Leisureworld Senior Care Corporation (TSX:LW) announced that it has agreed to acquire two luxury retirement residences for a total consideration of $94.8 million in Kingston and Kanata, Ontario. The two properties have a total of 294 suites and upon completion of the acquisition will rename the facilities to ‘The Royale’.
The Royalton in Kanata, Ontario is a five-story, 158 suites, 148,500 square foot property with current occupancy of 41%. The five story, Royalton in Kingston, Ontario consists of 136 suites with over 140,000 and has an occupancy of 51%. The transaction is expected to close at the end of April 2011 and will be financed through a subscription offering for the transaction and a bridge loan.
“This transaction is consistent with Leisureworld’s stated strategy of broadening our product and service offering along the continuum of care,” said David Cutler, President and Chief Executive Officer of Leisureworld. “With the acquisition of these properties, we will increase Leisureworld’s asset base by approximately 16%, diversifying our business through expansion in one of the fastest growing segments of the seniors living market.”
Leisureworld is the third largest licensed long-term care provider in Ontario. The Company owns and operates 26 LTC homes, representing approximately 4,314 beds across Ontario, Canada. The Company also owns and operates one retirement home with 29 suites and one independent living home with 53 suites.