Singapore Press Holdings Limited (SPH), through a wholly-owned subsidiary, has signed an agreement with affiliates of Columbia Pacific Advisors, LLC to acquire a portfolio of aged care assets in Canada for C$232.9 million (S$244.5 million). The deal is subject to “satisfactory due diligence”, said the company in a statement.
The portfolio of six freehold assets comprises five properties in Ontario and one in Saskatchewan. In total, there are 717 suites with an average age of around 7 years. Occupancy rates in excess of 90% have been consistently achieved over the past three years. The assets are currently being managed by Hawthorn Senior Living.
“These acquisitions are part of our strategy to expand our Aged Care business. We continue to seek cash-yielding assets in defensive sectors to build up our recurring income base,” said Ng Yat Chung, Chief Executive Officer of SPH.
“Population ageing is set to be one of the most significant social transformations of the 21st century. In developed economies like Canada, Japan and Singapore, the growth prospects for services targeted at older persons like independent living facilities and healthcare are good. We will continue to seek opportunities in the senior living sector in economies with similar characteristics,” said Anthony Tan, Deputy Chief Executive Officer of SPH.
SPH said it will fund the acquisition by a combination of internal funds and debt and the transaction is expected to complete by May 2020.
”Canada has one of the highest average life expectancies globally, at 82 years..”
”Canada has one of the highest average life expectancies globally, at 82 years, with the number of people 75 years and older growing by 52.6% over the next decade. Demand for independent living and assisted living services is projected to rise with an additional 199,000 beds required by 2035, up from 263,000 beds currently,” said SPH.
”The Canadian seniors housing market remains fragmented with over 250,000 seniors living in more than 2,900 seniors housing residences. The top five national operators collectively service less than 20% of the existing total supply of seniors housing and care properties6, offering an attractive market opportunity for SPH to tap.”