Industry Perspective

Quality of living: Supporting investments into Canadian seniors housing

February 3, 2022 - 3 minutes 30 seconds

An elderly couple smiles and laughs with friends

As more baby boomers head into retirement, there is increasing demand for seniors housing to serve this large demographic. This demand is further amplified by the renewed attention the COVID-19 pandemic placed on improving the quality of seniors living environments and the overall mental and physical well-being of our aging population.

"Over the last several years, we have witnessed a significant transformation in how government, private business, and society think about caring for the elderly" said Armen Farian, Managing Director and Head of Canadian Real Estate Investment Banking, TD Securities. "While seniors housing facilities were historically viewed primarily as a form of shelter, we now recognize these environments as essential to a flourishing quality of life."

"A well-designed seniors housing residence brings together a wealth of amenities, care services, and enrichment programing to create a community of connectivity and well-being. At TD Securities, we are committed to helping create these environments for Canada's growing seniors population by providing strategic advice to businesses and entrepreneurs while connecting them with the lowest cost of capital so they can accelerate quality care."

Supporting the seniors housing sector

Over the years, TD Securities has been at the forefront helping facilitate the flow of capital into the sector. We connect corporate and institutional investors with seniors housing companies and provide access to capital markets products as well as our own balance sheet to support the development of these residences. Our team has advised on the six largest transactions in the Canadian seniors housing industry in the last five years:

• 2022 – Sienna and Sabra's $310 million acquisition of 11 retirement residences from Extendicare (Exclusive Financial Advisor to Sienna and Sole Underwriter on acquisition financing) • 2022 – Welltower's $600 million acquisition of 9 retirement residences from Regency Retirement Resorts (Exclusive Financial Advisor to Regency) • 2021 – Blackstone's acquisition of 13 retirement residences from Revera and formation of joint venture with Groupe Sélection (Financial Advisor to Revera and Groupe Sélection) • 2019 – Ventas' $2.4 billion acquisition of 35 retirement residences and formation of joint venture partnership with Le Groupe Maurice (Exclusive Financial Advisor to Ventas and Lead Arranger on acquisition financing) • 2018 – Sienna's $382 million acquisition of 10 retirement residences from Amica (Financial Advisor to Amica and Sole Bookrunner to Sienna on acquisition financing) • 2017 – Chartwell's $418 million acquisition of 6 retirement residences from BayBridge (Financial Advisor to BayBridge and Joint Lead to Chartwell on acquisition financing)

Client testimonials

"TD has long been a trusted and valued partner of Amica," said Doug MacLatchy, Chief Executive Officer, Amica Senior Lifestyles. "When Amica set off on our strategy to accelerate growth in the seniors housing industry, our focus has been on care for seniors, including industry leading assisted living, memory care, and developing new generation retirement residences. TD acted as a strategic advisor on the disposition of several non-core portfolios, which provided Amica with additional capital that was reinvested in the business. In addition, as one of our largest lenders, TD has provided its balance sheet capital facilitating our growth including the development of several new state-of-the art retirement residences."

"My partners and I spent the last twenty years methodically building Regency into the leading owner and operator of retirement residences in the Okanagan Valley. When it came time for the founders to retire, we engaged TD as our strategic advisor based on their depth of knowledge and extensive experience in the seniors housing industry," said Ed Hall, Founder and Executive Chairman, Regency Retirement Resorts. "Through TD's advice and execution, we were able to find a purchaser who is committed to maintaining Regency's legacy in the local community and plans to invest significantly in further expansion of the Regency brand."

Leveraging over a decade of expertise

Developing and maintaining quality seniors living facilities for the elderly is a major challenge in this sector. As the focus on addressing well-being improvements intensifies and building a sense of community becomes a growing priority, our firm is committed to finding financial solutions that give aging generations a better experience as they settle into retirement.

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Disclaimer

This material is intended to provide commentary on economic, political or market conditions. Not Advice: The information contained in this material is for informational purposes only and is not intended to provide professional, investment or any other type of advice or recommendation, or to create a contractual or fiduciary relationship. Neither TD Securities (USA) LLC (“TD Securities USA”) nor any of its affiliates (collectively, “TD”) makes any representation or warranty, express or implied, regarding the accuracy, reliability, completeness, appropriateness or sufficiency for any purpose of any information included in this material. Certain information may have been provided by third-party sources and, while believed to be reliable, has not been independently verified by TD, and its accuracy or completeness cannot be guaranteed. Not Securities or Derivatives Research: This material has not been produced, reviewed or approved by TD’s securities or derivatives research departments. The views of the author may differ from others at TD, including TD securities or derivatives research analysts. Not Independent: The views expressed in this material may not be independent of the interests of TD.

Armen Farian
Managing Director and Head of Canadian Real Estate Investment Banking, TD Securities

Biography

Armen is a Managing Director and the Head of TD Securities' Canadian Real Estate Investment Banking group. He has over 20 years of experience advising North America's leading real estate public and private enterprises on a wide variety of mergers and acquisitions, divestitures, initial public offerings and equity and debt, public and private offerings.