Empire Crossing Retirement Community acquired by Extendicare 

 

October 1, 2015

On October 1, 2015 Extendicare Inc. (Extendicare) (TSX: EXE) announced that its wholly owned subsidiary acquired Nautical Lands (Nautical Lands) Group's subsidiary Empire Crossing Retirement Community (Empire Crossing) for $20.2 million.

Opened in May 2015, Empire Crossing is a newly-built 64 suite independent and assisted living community in Port Hope, Ontario.

The acquisition is reflective of Extendicare's plan to grow across the continuum of care and increase the proportion of private-pay revenue within its overall business mix.

The vendor has provided Extendicare with 24-months occupancy support of up to $1.3 million. This amount will be held back from the $20.2 million purchase price on closing and released back to Extendicare during the lease-up period based on its agreement with Nautical Lands. The purchase price represents a per suite value of approximately $315,600 and a stabilized NOI yield estimated at 6.88 percent. The purchase price will initially be paid in cash with an intention to finance up to 65 percent within a year.

Nautical Lands was represented by a McMillan team led by Patrick Murray (commercial real estate) and included Chase Irwin (securities), Alexandra Smith and Jane Whittington.

The Nautical Lands Group, a private developer of retirement homes in Ontario, has set out to develop land for and operate retirement homes, positioning them for sale after establishment. This transaction is Nautical Lands' fifth venture and there are plans to expand in Port Hope.