Toronto, Ontario - September 26, 2019 – Cranson Capital Securities Inc. is pleased to announce that it has successfully completed a $10 million capital raise for V!VA West Rouge. Two institutional investors together invested $10 million and V!VA West Rouge will put in the additional required equity. These funds were used to purchase 7 acres of land to develop a senior’s housing community in the Port Union area of Toronto at 45 Lawson Rd.
Out of the 7 acres available, 2.4 acres consists of a treed ravine designated as a natural heritage feature and 4.6 acres is considered buildable shelf land. The site on Lawson Road is already zoned for a senior’s living community, under General Institutional, therefore reducing the time, cost and risk associated with other un-zoned development projects. V!VA intends to build a 245,783 sq. ft. senior’s housing complex with 270+ suites with both independent living and assisted living units and seniors apartments. In support of V!VA’s intergenerational programming, an independently operated children’s daycare is also planned for the community.
“Senior’s housing is an attractive niche asset class for investors,” says Devon Cranson, President and Founder of Cranson Capital. “Demographics show demand for senior’s housing will increase drastically as the aging population continues to grow.”
While senior’s housing units did grow at a rate of 6.9% over the last decade, the population of elderly adults in Canada grew even faster. According to Statistics Canada, the number of Canadians over the age of 80 was 1.3 million in 2010. By 2036, this number is expected to rise sharply to 3.3 million. As the population ages, communities are running into capacity issues within hospitals and there is a growing need for independent residences for elderly adults.
According to the CMHC, the overall vacancy rate within the senior housing sector decreased to a record low of 9.9% in 2018, down 40bps y/y, while the average rent for a standard space increased by 2.6% y/y, to $3,618. The market remains relatively strong despite a supply increase of 3,500 spaces y/y, the largest increase in 17 years.
“The Port Union demographics align well with retirement living, along with its affluence and lack of competition make it a strong opportunity for V!VA and the investors,” adds Cranson.
In addition to V!VA West Rouge, Cranson Capital has led capital raises for other seniors housing residences across Canada and continue to look for new opportunities in the space. To learn more about investment opportunities with Cranson Capital, please visit www.cransoncapital.com.
About V!VA Retirement Communities
V!VA Retirement Communities is a seniors housing operator with 8 buildings in Ontario. V!VA looks to build and operate amenity and programming rich buildings to provide an engaging experience for its residents. V!VA provides independent living, assisted living and respite care services to its residents.
About Cranson Capital
Cranson Capital is a boutique investment banking firm which focuses on providing financial and advisory services to small to medium sized growth businesses. The business consists of two divisions; Cranson Capital Securities and Cranson Capital Solutions, both of which offer unique services to support our investors and entrepreneurs. Cranson Capital Securities is registered with the Ontario Securities Commission as an Exempt Market Dealer and specializes in raising capital from accredited investors for private placements in real estate developments, technology start-ups and high growth companies. Cranson Capital Solutions is a corporate finance advisory firm which focuses on finding the right financing solutions for our entrepreneurs. For more information visit: www.cransoncapital.com.