Sienna Senior Living enters agreement to acquire The Hygate

Sienna Senior Living (LWSCF) entered into a purchase agreement to acquire The Hygate on Lexington, a 216-suite retirement residence in Waterloo, Ontario. Built in 2021, the six-story property is located in the highly attractive Waterloo market and offers a diverse range of accommodations, including 126 independent supportive living units, 40 assisted living units and 50 seniors apartments. The property also includes a 4.7-acre development site with municipal zoning for a retirement residence or residential condominium. The gross purchase price for Hygate is $93.3 million, or approximately $432,000 per suite, with a stabilized investment yield of approximately 6.0%. The property, which is currently in lease-up, has an approximate 65% occupancy rate, and is expected to reach stabilized occupancy within two years of closing. Sienna will acquire the property at a discount to replacement cost and will leverage its extensive experience and market knowledge to achieve its targeted occupancy growth. Sienna intends to finance the full purchase price of Hygate with cash on hand and its credit facilities. The acquisition is subject to regulatory and governance approvals and customary closing conditions, and is expected to close within 60 days.