Amica Mature Lifestyles Increases Ownership in Amica at West Vancouver and Amica at City Centre Mississauga
August 10, 2010
Amica Mature Lifestyles recently announced the acquisition of additional ownership interests in Amica at West Vancouver and Amica at City Centre.
The company has completed an acquisition of an additional 35.16 per cent interest in Amica at West Vancouver, bringing the company’s ownership position to just over 80 per cent. This month, the company will also complete the acquisition of an additional 34 per cent interest in Amica at City Centre in Mississauga, Ontario, bringing the company’s ownership position to 68 per cent.
*Amica at West Vancouver
The aggregate purchase price for the acquisitions is $24.7 million including cash consideration of $3.7 million and the assumption of the vendors’ share of mortgages payable on the properties of $20.5 million and $0.5 million in other net liabilities.
As a result of the company’s ownership interest in the residences increasing to greater than 50 per cent, the company will consolidate the assets, liabilities, operating results and cash flows of both of these communities in its financial statements commencing in the first quarter of fiscal 2011.
“Increasing our ownership positions in Amica at West Vancouver and Amica at City Centre represents a significant shift in our business model and strategy moving forward,” says Samir Manji, Amica’s President and Chief Executive Officer. “We believe that acquisitions resulting from this shift in corporate strategy will enhance the company’s consolidated asset base and the corresponding revenues, operating results and cash flow generated from these investments. At the same time, they will bring better balance to Amica’s risk/reward profile and create greater long-term value for Amica’s shareholders.”
Since inception, Amica has evolved from an owner/operator, whereby it owned 100 per cent of all of its retirement residences, to a manager/operator, with a focus on growth in the number of Amica communities in operation managed by Amica but in which the company did not have a significant ownership interest. Going forward, the company says that while it will maintain its brand manager business model, it will now additionally focus on increasing its ownership position in some of its mature communities.
Amica will also look for opportunities to acquire ownership positions in, and management contracts for, qualified seniors residences not currently owned or managed by the company.
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