The baby boomer market has been a lucrative market for decades – and now as they enter retirement, one investment firm is keying on residences that cater to this large group’s needs.
Cranson Capital Securities Inc. has successfully completed a $22 million capital raise for the Points West Living Limited Partnership (PWL).
“Through this investment our investors are helping to provide quality lifestyles for Alberta’s seniors population,” said Devon Cranson, president of Cranson Capital Securities. “We’re excited to be able to partner with such a strong management team with a solid vision for growth which enables investors to have a steady stream of cash flow and the strong potential for a meaningful exit.”
A total of 155 investors participated in the offering, enabling the Limited Partnership to acquire a portfolio of state-of-the-art seniors housing residences across Alberta.
Cranson Capital worked with Steve Suske, president of Suske Capital Inc. and most recognized as the founder of Chartwell Retirement Residences and Regal Lifestyle Communities, in executing the acquisition. Total consideration for the portfolio was approximately $100 million, including the Cranson Capital offering, an additional $9.8 million investment from management and approximately $68 million in mortgage financing.
“We look forward to working with PWL again in the near future as they grow their portfolio,” said Cranson.
This transaction gives investors a unique opportunity to partner with a management team that has a proven track record of creating significant value for stakeholders.
Points West Living Inc. was founded by Doug Mills, Paul Melanson and Georg Rath, who have over 20 years of experience operating seniors housing residences.
Cranson Capital continues to view seniors housing as an attractive asset class for investors, and Cranson sees PWL as a great example of a solid seniors housing investment platform, and a very stable investment with strong growth potential due to favorable demographic trends of an aging population.
PWL operates under the Alberta Supportive Living Initiative, a government program that provides funding to develop and operate senior’s housing residences, and currently operates 460 suites across Alberta. It has the rights to acquire a development pipeline of an additional 500 suites once they are stabilized and is the operator of an additional 2,100 suites – which should ultimately lead to an increase in the value of the portfolio and make the LP more attractive to potential acquirers.
“Cranson Capital’s leadership in bringing investors to this opportunity has enabled us to complete the acquisition,” said Steve Suske, chair of the Points West Living Limited Partnership. “The PWL management team truly understands the responsibility of a seniors housing operator to take care of moms and Dads’, and we’re proud to be partners with them as they continue to grow as the leading provider of seniors care in Alberta.”