Sienna Senior Living has announced plans to acquire two high-quality senior homes in Ontario for $81 million altogether and launched a $125-million equity offering to finance the acquisitions and support future growth initiatives.

The company will purchase Wildpine Residence, a 165-suite retirement residence in Stittsville, a suburb of Ottawa, and Cawthra Gardens, a 192-bed class A long-term care home in Mississauga, a city in the Greater Toronto Area. The combined purchase price for both properties is $81 million. The acquisitions are expected to strengthen Sienna’s asset base in key Ontario markets and generate immediate operational synergies, said the company.

“”The acquisitions will be completed at a significant discount to replacement cost and are expected to be immediately accretive to Sienna’s [adjusted funds from operations] per share,” said David Hung, CFO and executive vice-president of investments at Sienna.

The acquisition of Wildpine Residence, valued at $48 million, includes 119 independent living and 46 assisted living units. Opened in 2019, the four-storey property features luxury suites with balconies and patios, multiple dining rooms, a pub and lounge, and modern health and fitness amenities. The purchase will be financed through the assumption of approximately $25 million in Canada Mortgage and Housing Corporation-insured debt, with the remainder covered by general corporate funds. The capitalization rate for the acquisition is 6.25%. Subject to regulatory approvals and closing conditions, the transaction is expected to close by mid-2025.

Sienna will also acquire Cawthra Gardens for $32.6 million. Built in 2003, the Mississauga-based long-term care home comprises 120 private beds and 72 basic beds, serving a high-demand market. The purchase includes a $2-million capital allowance to be used within the first year after closing. The acquisition will be funded through general corporate funds and is expected to close in early 2026, pending regulatory approvals. The cap rate is 6.75%.

Sienna will fund these acquisitions, along with other strategic initiatives, through bought-deal equity offering. The company has entered into an agreement with a syndicate of underwriters led by TD Securities, which will purchase 7.92 million common shares at $15.80 per share. The offering also includes an over-allotment option for an additional 1.19 million shares, which could increase total gross proceeds to $144 million.

Proceeds from the offering will be used to complete the acquisitions and support general corporate purposes, including potential future growth opportunities.

“The remaining net proceeds will provide Sienna with enhanced balance sheet flexibility as we continue to evaluate attractive acquisition opportunities in our target markets,” the company stated.

The offering is expected to close on or about February 27 subject to customary regulatory approvals, including approval from the Toronto Stock Exchange. The acquisitions remain contingent on approvals from the Ontario Retirement Homes Regulatory Authority and the Ontario Ministry of Long-Term Care.

Pictured: Wildpine Residence, a retirement home located in the Ottawa suburb of Stittsville, Ont.

Photo: B&K Management & Consulting