Regal Lifestyle Communities to Buy 7 Canadian Senior Living Properties for $160M

Regal Lifestyle Communities Inc. (TSX:RLC) has agreed to acquire seven senior living communities in Quebec for $160 million (approximately $146.3 million USD) at a 7.8% cap rate in a deal expected to close around June 6.

The retirement communities are being acquired from ELAD Genesis Limited Partnership and have been managed by Societe de Gestion S.E.N.C. (Cogir) for the past few years. Cogir will continue to manage the 1,449-unit portfolio once the transaction has closed.

“This acquisition provides Regal with a meaningful presence in Quebec, which is one of the strongest and most active markets for seniors housing in Canada,” Regal Lifestyle Communities President and CEO Simon Nyilassy said in a statement. “We are pleased to have obtained a large portfolio of well-leased and maintained homes focused in the Montreal area, the economic heartland of Quebec, at an attractive price that will result in immediate AFFO per share accretion for our shareholders.”

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Regal has identified about $9.4 million of capital improvement and renovation programs for the portfolio which it plans to undertake in the next five years in order to competitively position each property in their respective markets.

The Quebec portfolio consists of Le Clair Matin in Longueuil, L’Emerite de Brossard in Brossard, Les Jardins du Couvent in Marieville, Les Jardins Interieurs in Saint-Lambert, Les Jardins Vaudreuil in Vaudreuil-Dorion, and Manoir Lafontaine and Pavillon des Cedres, both in Riviere-du-Loup.

The seven properties had an average 94.3% occupancy as of May 1, 2014 and were built between 1956 and 2002, with renovations on most of the communities taking place between 2000-2013.

Written by Alyssa Gerace

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