Amica Mature Lifestyles Inc. (TSX:ACC) is spending $17.97 million to acquire additional interests in two of its branded retirement homes – a move consistent with its four-month-old strategy to regain majority interest in its properties.
As Business in Vancouver noted in August after Amica made a similar investment in two other properties, the Vancouver firm owned 100% of all of its retirement residences when it was founded in 1996. (See “Amica upping corporate ownership stake in its retirement homes” – BIV Daily Edition, August 4.)
It then morphed into being a manager and operator of homes in which it had minority stakes. That shift enabled it to grow the number of homes in its portfolio to 25, according to its website.
Samir Manji, Amica's chairman, president and CEO, said in a release that its recent purchases, which closed on December 31, reflect execution of Amica's shift in strategy announced in August 2010 when it increased its ownership positions in Amica’s West Vancouver and Mississauga properties (the latter is branded City Centre).
“While we continue to maintain our brand manager business model, we are simultaneously focusing on increasing our ownership position in some of our mature communities to enable us to strengthen our asset base and benefit from the revenues, operating results and cash flow generated by these communities,” said Manji.
“We look forward to continuing to focus on the execution of our plan, both in our efforts to increase our ownership in existing mature Amica communities and evaluating external acquisition opportunities."
Amica has spent $11.73 million acquiring an additional 40% interest in its Newmarket, ON, property, bringing its ownership position in the property to 56%.
The company now owns 100% of its Villa Da Vinci property in Vaughan, ON, after spending $6.24 million to acquire an additional 37.5% interest.
Amica’s share price range during the last week: $6.65 to $6.96; 52-week high: $4.80; 52-week low: $7.75.