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Optima, Axium purchase 7 Alberta seniors properties for $440M • RENX • Actual Property Information Change
IMAGE: The Laurel Heights Retirement Residence in Edmonton
Laurel Heights Retirement Residence in Edmonton. (Courtesy Optima Dwelling)

Optima Dwelling and Axium Infrastructure have acquired seven seniors residing belongings through their Yarrow three way partnership for roughly $440 million, including over 1,200 beds to their Alberta portfolio.

“This acquisition deepens our collaboration with Axium and demonstrates our capability to create worth by buying, integrating and managing a sizeable and various portfolio of seniors residing communities, which considerably solidifies Optima’s presence in Western Canada,” stated Karim Kassam, Optima’s co-founder and principal in a press release. 

“We imagine there are robust tailwinds forward for seniors housing on account of sector demographics and a scarcity of seniors residing choices creating lengthy wait lists, particularly for government-funded beds.

“From an funding perspective, development for seniors residing communities is at traditionally low ranges; this sector continues to see asset appreciation with reliable revenue, making investing on this sector engaging.”

Vancouver-based Optima has operated unbiased and assisted-living care amenities in Alberta and B.C. since 2006, and has compiled a portfolio of 33 belongings and over 3,400 beds.

Montreal-headquartered Axium Infrastructure is an unbiased portfolio administration agency with workplaces in Canada, the U.S. and the U.Okay. It had over $10 billion in belongings beneath administration as of the tip of 2022, in addition to $1.7 billion in co-investments.

The Optima-Axium acquisition

4 of the belongings are in Edmonton: the 169-suite Laurel Heights Retirement Residence, the 174-suite Lewis Estates, MacTaggart Place with 180 suites and the 172-suite Rutherford Heights.

There’s additionally the St. Albert Retirement Residence in St. Albert, which opened in 2016, and Summerwood Village in Sherwood Park, a hamlet in Alberta. The latter has been open since 2008.

The only Calgary asset is Sage Hill Retirement Residence, which was constructed in 2016.

The acquisition makes the three way partnership one of many high seniors residing operators by mattress rely within the Edmonton market, the businesses say.

Dentons and Nationwide Financial institution Monetary acted as authorized and monetary advisors, respectively, to the three way partnership.

Optima says the acquisitions are according to its aim to satisfy a “huge and rising demand for seniors residing and assisted care amenities” as Canada’s growing old inhabitants continues to develop.

It additionally suits with the corporate’s technique so as to add each bed-type and geographic variety to its portfolio, particularly in Western Canada.

“The acquisition of those seven trophy belongings provides to the observe report of feat of this goal,” Kassam added. “During the last three years, we now have delivered on our intentional development, focusing solely on Alberta and British Columbia.

“We have now recognized markets the place we see potential for Optima and our buyers, and opportunistically deployed capital to amass institutional high quality belongings in synergistic markets, leveraging economies of scale to achieve crucial market share.”

The three way partnership was established in November 2020. Axium owns a 90 per cent fairness curiosity within the partnership, whereas Optima owns a ten per cent fairness curiosity and operates the amenities.

Latest acquisitions

In October, Optima and Axium acquired eight seniors’ supportive-living communities from H&H Complete Care Companies in Alberta and B.C., comprised of 1,092 suites, for greater than $300 million.

The properties collectively have been often called The Hamlets. Three are in Alberta — two in Crimson Deer and one in Airdrie — whereas the B.C. properties are in Kamloops, Surrey, Penticton, Duncan and Vernon.

That portfolio included a mixture of assisted-living and independent-living suites together with funded long-term care and sophisticated care beds and personal pay advanced care beds.

EDITOR’S NOTE: This text was up to date to right the acquisition value to roughly$440 million, on account of incorrect info which had initially been provided to RENX.

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