Exploring a $5bn sale, Ontario Teachers' weighs options for luxury senior-living firm Amica
Ontario Teachers' Pension Plan is reportedly considering the sale of Amica Senior Lifestyles, a luxury senior-living residences company, which could be valued at approximately $5bn (US$3.6bn).
Sources familiar with the situation informed BNN Bloomberg of this development.
Currently, Ontario Teachers' is working with advisers on this potential sale of the Toronto-based company. Interest has been expressed by multiple parties, according to these sources who preferred to remain anonymous due to the private nature of the sale details.
They noted that no final decision has been reached and Ontario Teachers' might decide to retain ownership of Amica.
Representatives for both the pension fund and Amica have not made official comments regarding the potential sale.
Ontario Teachers' acquired Amica in 2015, making it a private company through a takeover by its subsidiary, BayBridge Seniors Housing Inc. According to Amica's website, the company now operates over 30 senior-living locations across British Columbia and Ontario.
The potential sale comes as Ontario Teachers' begins transitioning its real estate investing team in-house from its subsidiary, Cadillac Fairview Corp. Last year, the pension fund's performance lagged its benchmark significantly, achieving a 1.9 percent gain.
This underperformance was attributed to lower valuations on real estate and infrastructure investments, which were adversely affected by rising interest rates. In contrast, the real estate portfolio itself declined by 5.9 percent, while its benchmark saw a 2 percent gain.
