Leisureworld Acquires Senior Living Portfolio for $254 Million

Leisureworld Senior Care Corporation (TSX: LW) recently agreed to acquire a senior living portfolio of 10 properties in Ontario from Speciality Care Inc. and certain other parties. 

The portfolio includes six long-term care (LTC) homes, two retirement residences and two properties containing both long-term care and retirement residence components, all of which are located in southern Ontario, the company announced. 

The aggregate purchase price is $254 million (approximately $249.9 million USD) for a portfolio with 1,235 long-term care beds and 326 retirement suites, as well as the third-party senior living management business operated by Specialty Care. 

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“We are focused on continuing to grow Leisureworld as a leading provider of LTC homes and retirement residences,” said Dino Chiesa, chair of the board at Leisureworld. 

The acquisition, says Chiesa, is expected to be 14% accretive to the company’s adjusted funds from operations (AFFO) per common share within the first full year of operations, while complementing Leisureworld’s current portfolio.

The agreement will increase Leisureworld’s long-term care beds by 28% and retirement suites by 44%. Leisureworld expects the acquisition to close during the fourth quarter of 2013.

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In other news regarding the company, Leisureworld announced the appointment of Lois Cormack as President and CEO, effective April 22, 2013. Cormack, the President of Specialty Care Inc., has increased beds under management by 32% over the past four years, according to Leisureworld. 

“We are delighted to have Ms. Cormack assume the leadership of the company,” said Chiesa. “Ms. Cormack brings significant experience in the senior housing sector, valuable relationships, knowledge of the regulatory environment, strong leadership skills and a passion for the business.”

Cormack replaces former CEO David Cutler, who stepped down last summer and took a similar position with Centrick Health Corp.

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Written by Jason Oliva

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