Irvine, CA-based Sabra HealthCare REIT and Markham, Ontario-based Sienna Senior Living have formed a joint venture to purchase an 11-property portfolio of private-pay senior living communities for $243 million from Markham, Ontario-based Extendicare.
The properties, currently operating under the Espirit name, are located in the provinces of Ontario and Saskatchewan, and the transaction is expected to be completed in the second quarter. Sabra’s commitment is approximately $121 million.
Under the terms of the joint venture, named Sienna-Sabra LP, each company will acquire a 50% interest in the portfolio, which Sienna will manage. Although predominantly consisting of independent living units, the 1,048-unit portfolio offers opportunities for residents to age in place with assisted living and memory care units, the companies said.
The transaction will increase Sabra’s Canadian portfolio and will deepen the strategic relationship between Sabra and Sienna, according to the REIT. Eight of the Canadian independent living communities that Sienna manages are wholly owned by Sabra.
“We’ve been looking to grow in Canada since our initial investment a number of years ago and are happy to finally get another one done,” Sabra CEO Rick Matros told the McKnight’s Business Daily. “Sienna is a fantastic partner, and we always enjoy growing with existing operators and being a good capital partner. It’s a new, high-quality portfolio, which was very attractive to us.”
Sienna is viewing the purchase as an opportunity to expand in its existing Ontario markets and to enter the Saskatchewan market.
“In addition, our strategic joint venture with Sabra through this transaction is expected to be an additional source of future growth for the company,” Sienna President and CEO Nitin Jain said in a statement.
For its part, Extendicare said that it is repositioning the company “to focus on growth in our long-term care and home healthcare segments.”
“We are pleased with the value we will realize on our retirement living investment,” Extendicare President and CEO Michael Guerriere said.
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