Amica takes 100% ownership of east-end retirement home

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Amica Mature Lifestyles Inc. (TSX:ACC) now has full ownership of Ottawa retirement residence Amica at Bearbrook after paying $12.1 million to increase its stake from 10 per cent.

The retirement home, located in Blackburn Hamlet, has 101 suites and is at 95 per cent occupancy. Several move-ins in the coming weeks will push that occupancy to 96 per cent, the company stated.

"With a strong focus and commitment from our team, operational changes and the capital renovation undertaken, Amica at Bearbrook's occupancy and operating results have improved and are expected to further strengthen in the months ahead," stated Amica CEO Samir Manji.

"Amica at Bearbrook represents a strong addition to our growing ownership interests in existing Amica communities and we believe it will contribute to our overall long term financial performance."

Money for the transaction came from a combination of loans payable to Amica, assuming the vendors' share of third-party mortgages and cash consideration, Amica stated.

The transaction is effective Sept. 1, and the company estimates the capitalization rate it paid was 7.5 per cent.

Earlier this year, Vancouver-based Amica upped its stake in a Westboro retirement residence for $30.72 million.