2013-09-03 14:35:48 -
Vancouver, British Columbia CANADA, September 03, 2013 /FSC/ - Amica Mature Lifestyles Inc. (ACC - TSX), ("Amica" or the "Company") is pleased to announce that the Company has acquired an additional 50% ownership interest in Amica at Erin Mills, located in Mississauga, Ontario, bringing the Company's ownership position to 100%. The effective date for the acquisition was September 1, 2013.
"We are pleased to have been provided with the opportunity to increase our ownership in Amica at Erin Mills to 100% at a price that represents good long-term value and is well below replacement cost," said Samir Manji, Amica's Chairman, President and CEO. "Amica at Erin Mills is located in a very competitive market in Mississauga, Ontario with significant supply
and demand disequilibrium, which we believe will level off in the near-term. We are seeing signs of this based on occupancy at Amica at Erin Mills trending upwards over the past several quarters and we expect this momentum to continue. We believe there is significant upside to be realized in the operating performance of this Community and savings to be realized from the upcoming renewal of the current $15.9 million mortgage on Amica at Erin Mills."
The purchase price paid for the acquisition of the 50% ownership interest is approximately $10.5 million, including: cash consideration of $2.0 million, the assumption of the vendors' share of the mortgage on the property of $8.0 million and other net liabilities in the amount of approximately $0.5 million. The third party mortgage is a $15.9 million first mortgage (CMHC-insured) with an interest rate of 4.56% which matures December 2013.
Amica at Erin Mills has a total of 131 suites and is currently at 86% occupancy which is expected to increase to 86.8% based on one net pending move-in anticipated to take place. Net pending move-ins reflects suites that have been reserved with a deposit made for the reservation, less suites for which notice of termination has been received.
Based on budgeted fiscal 2014 net operating income, the Company estimates that the capitalization rate paid on the acquisition is approximately 6.8% at an average occupancy of 91.3%.
ABOUT AMICA MATURE LIFESTYLES INC.
Amica Mature Lifestyles Inc., a Vancouver based public company, is a leader in the management, marketing, design, development and ownership of luxury seniors residences. There are 24 Amica Wellness & Vitality(tm) Residences in operation in Ontario, British Columbia and Alberta, Canada. Additionally, Amica has one residence under construction in Oakville, Ontario and two existing operational residences in Ontario with expansions that are in pre-development. The common shares of Amica are traded on the Toronto Stock Exchange under the symbol "ACC". For more information, visit www.amica.ca.
This news release contains "forward-looking information" within the meaning of applicable securities laws ("forward-looking statements").
These forward-looking statements are made as of the date of this news release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as otherwise required by law. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to, statements regarding the purchase price of the acquisition; the estimated capitalization rate paid based on budgeted fiscal 2014 net operating income; future occupancy and financial performance of Amica at Erin Mills; the supply and demand disequilibrium leveling off in the near-term; the upside to be realized in the operating performance of Amica at Erin Mills and savings to be realized from the upcoming renewal of the current $15.9 million mortgage; and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and assumptions include, amongst others, the effects of general economic and market conditions, actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgements in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include, among others, risks related to: capital markets; cost overruns, delays and start-up losses for new real estate developments; the availability of capital to finance growth or refinance debt as it comes due; the ability of seniors to pay for Amica's services; Amica's ability to attract seniors with its services and keep pace with changing consumer preferences; risks inherent in the ownership of real property; operational risks inherent in owning and operating residences; dependence on the ability of Amica's co-tenancy participants to meet their obligations; interest rate volatility in the marketplace; regulatory changes; job actions including strikes and labour stoppages; possible liability under environmental laws and regulations relating to removal or remediation of hazardous or toxic substances on properties owned or operated by Amica; the risks associated with global events such as infectious diseases, extreme weather conditions and natural disasters; foreign exchange rate volatility; as well as those factors discussed in Amica's Annual Information Form dated August 9, 2013, filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements, or the material factors or assumptions used to develop such forward looking statements, will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements.
For further information, please contact:
Mr. Art Ayres
Chief Financial Officer
Amica Mature Lifestyles Inc.
Ms. Alyssa Barry
Manager, Investor Communications
Amica Mature Lifestyles Inc.
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To view the press release as a PDF file, please click on the following link:
Source: Amica Mature Lifestyles Inc. (TSX: ACC) www.amica.ca/
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