Ontario Teachers’ reportedly weighing $5 billion sale of luxury senior residences chain

financialpost.com:

The Ontario Teachers’ Pension Plan is exploring a sale of luxury senior-living residences Amica Senior Lifestyles, which could be valued at about $5 billion, according to people familiar with the matter.

Teachers’ is working with advisers on a potential sale of the Toronto-based company, which has drawn interest from multiple parties, said the people, who asked to not be identified because the details are private. No final decision has been made and Teachers’ could opt to to hold onto the business, the people added.

A representative for the pension fund declined to comment. A representative for Amica didn’t immediately respond to a request for comment.

Teachers’ took Amica private in 2015 via a takeover by its subsidiary BayBridge Seniors Housing Inc., according to a statement at the time. Today, the company has more than 30 senior-living locations in British Columbia and Ontario, according to its website.

The pension fund is mulling the sale soon after starting to move its real estate investing team in-house from subsidiary Cadillac Fairview Corp. Ontario Teachers’ gained 1.9 per cent last year, underperforming its benchmark by a wide margin, as it lowered valuations on real estate and infrastructure investments hit by higher interest rates. The real estate portfolio declined 5.9 per cent, compared with a two per cent gain for its benchmark.

Bloomberg.com