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Sabra and Sienna Senior Living Deepen Relationship with Pending Portfolio Acquisition
IRVINE, Calif.--(BUSINESS WIRE)-- Sabra Health Care REIT, Inc. (“Sabra,” the “Company” or “we”) (Nasdaq: SBRA) announced today that, subject to certain
About this update from Sabra Health Care Reit, Inc.
[{"type":"text","content":" IRVINE, Calif.--(BUSINESS WIRE)--\nSabra Health Care REIT, Inc. (“Sabra,” the “Company” or “we”) (Nasdaq: SBRA) announced today that, subject to certain closing conditions, the Company along with Sienna Senior Living (“Sienna”) (TSX: SIA) have agreed to acquire a high-quality Canadian senior housing portfolio for total consideration of C$307.5 million (USD $243 million).\n\nSabra and Sienna have announced the pending acquisition of a portfolio of 11 high-quality senior housing communities strategically positioned across the provinces of Ontario and Saskatchewan, which will be acquired through a newly formed 50/50 joint venture. The predominantly independent living portfolio consists of mostly newer construction with an average age of six years, which positions it well to capture demand growth across the senior housing industry as Canada’s 75+ population is expected to double over the next 20 years. Importantly, this transaction will also deepen the strategic relationship between Sabra and Sienna. Sienna is a world-class owner/operator of senior housing and long-term care communities that currently manages eight Canadian independent living communities that are wholly owned by Sabra.\n\nTalya Nevo-Hacohen, CIO of Sabra, said, “We have had a longstanding relationship with the Sienna team and after evaluating several investments over the years we are pleased to deepen our strategic relationship through the pending acquisition of a high-quality senior housing portfolio with substantial scale. The combination of Sabra and Sienna’s asset management and operating skillsets allow us the opportunity to improve performance and create value with this attractive portfolio.”\n\nTransaction Highlights\n\n\nTotal purchase price of C$307.5 million (USD $243 million), with Sabra’s commitment equating to approximately C$154 million (USD $121 million).\n\n\nSabra and Sienna will acquire the 1,048 unit portfolio through a newly formed 50/50 joint venture, with Sienna to operate the portfolio.\n\n\nThe per unit basis of this portfolio is approximately C$295,000 (USD $230,000), which is below replacement cost and attractive amidst a backdrop of escalating construction costs.\n\n\nExcluding one recently constructed community in lease-up, the portfolio includes ten communities with 936 units and an estimated value of C$275 million (USD $217 million). Y...