Opportunities at Levante
“As the number of seniors continues to grow, experts say Canada is failing to prepare for the housing and home care needs of an aging population. ‘We’re so far behind where we ought to be, given we know these trends are happening and we’ve known about these trends for the past 20 years.’”
—”We are so far behind: Canada unprepared for housing needs of a rising senior population.” Mark Gollom for CBC News (CBC.ca), May 4, 2017. Quote by Mark Rosenberg, Geography and Planning Professor at Queen’s University and the Canada Research Chair in Development studies.
Investing with Levante
The Levante Living Trust is a fund that provides a vehicle for investors to potentially capitalize on favorable demographic trends such as an aging population, increasing life expectancies, and the growing need for specialized care and stable sources of revenue in the Senior Living Industry in Canada. The intended result is consistent, long term wealth creation as well as enhancing the lives of seniors in Canada.
The Levante management team has 20 years in the senior living healthcare sector, including the development, operations and redevelopment of long-term care facilities and adult based residential communities as well as a combined 30 years experience in financial services, market equity raises, and managing public companies.
- Canada’s mid-market retirement & long-term care owner/operator
- Enhancing the lives of Canadian seniors through professional and experienced management
- Focused on assisted living and long-term care
- Intended result is consistent wealth creation for investors
Senior Living Industry Information
For a business to be sustainable, there must be demand for a product over time. What we see in the senior living market is massive future growth in the population of those age 65 years and older. This is verified by numerous sources including Statistics Canada who report: “According to all selected scenarios, the proportion of seniors aged 65 years or older will continue to increase in the future. This group would represent between 23%-25% by 2036 and between 24%-28% by 2061, compared to 14% in 2009. By 2036, the number of seniors would more than double the number observed in 2009.” (“Population Projections for Canada, Provinces and Territories.” Statistics Canada. November 27, 2015. Accessed July 2017. http://www.statcan.gc.ca/pub/91-520-x/2010001/aftertoc-aprestdm1-eng.htm)
Population Growth
This graph demonstrates the projected growth in the population of seniors compared to those 14 years and younger. In 2011, an estimated 5.0 million Canadians were 65 years of age or older, and this number is expected to double in the next 25 years to reach 10.4 million seniors by 2036. By 2051, about one in four Canadians is expected to be 65 or over. By the time they reach 80, many will need some form of institutional care.
Lower Vacancy Rates
While the demand for senior living accommodations continues to remain strong due to the growing senior population, Levante Management believes there is evidence to support that the supply has struggled to keep up.
In a study titled, “Seniors and Housing: The Challenge Ahead” published in 2015 by the Federation of Canadian Municipalities, high rents and low vacancy rates are major barriers for seniors seeking appropriate housing. Appropriately designed, suitably located, and affordable rental housing represents an important housing option for seniors either unable or uninterested in home ownership. (“Seniors and Housing: The Challenge Ahead.” Federation of Canadian Municipalities. 2015.)
Acquisitions
Looking to sell?
The Levante team is always interested in further growth and innovation. If you own and operate a senior living home, a portfolio of homes, or service the senior living industry and would like to discuss selling your assets, please contact our experienced acquisition team. It would be our pleasure to share with you the various ways in which we could participate in a mutually beneficial transaction.