Singapore

SPH buys six aged-care homes in Canada for $245 million

Singapore Press Holdings (SPH) has announced, within the space of a week, two investments abroad in the aged-care business.

It announced yesterday it had acquired a portfolio of assets in Canada for C$232.9 million (S$245 million).

On Monday, it announced the purchase of five senior independent-living assets in Japan for 5.26 billion yen (S$66.5 million).

The acquisitions are in line with the media and property group's strategy of expanding its aged-care and healthcare business in overseas markets with favourable demographics.

The six freehold assets in Canada comprise five properties in Ontario and one in Saskatchewan.

With 717 suites and an average age of around seven years, the properties provide independent and assisted-living accommodation and services to seniors, SPH said.

Currently managed by Hawthorn Senior Living, the properties have consistently achieved occupancy rates of more than 90 per cent in the past three years, said SPH.

SPH entered the aged-care business in 2017 with its acquisition of Orange Valley, one of Singapore's largest private nursing homes.

Its Canadian acquisition, expected to be completed in May, will be funded by a combination of internal funds and debt, said SPH.

The deal, entered into with affiliates of Columbia Pacific Advisors, is subject to satisfactory due diligence.

SPH said the top five national operators in Canada collectively service less than 20 per cent of the existing total supply of senior housing and care properties, offering an attractive market opportunity.

SPH deputy chief executive Anthony Tan said: "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."

Property