Macquarie Power & Infrastructure Income Fund and Leisureworld Announce Completion of Acquisition
- Adds seven long-term care homes to Leisureworld’s portfolio
- Expands Leisureworld’s geographic footprint
- Supports long-term stability of Leisureworld’s cash flow
TORONTO, Ontario (January 31, 2008) – Macquarie Power & Infrastructure Income Fund
(TSX: MPT.UN; MPT.DB – “MPT” or the “Fund”) today announced that Leisureworld Senior
Care LP (“Leisureworld”), in which MPT owns a 45% interest, has completed its previously
announced acquisition of seven long-term care (“LTC”) homes from a wholly-owned subsidiary
of Counsel Corporation (TSX: CSX) following receipt of regulatory approval for the transaction
from the Ontario Ministry of Health and Long-Term Care (“MOHLTC”).
“These homes are an excellent fit for Leisureworld’s portfolio and are located in communities
where there is stable demand for long-term care,” said Gregory Smith, President and Chief
Executive Officer of the Fund. “This transaction is consistent with Leisureworld’s strategy to
deliver high quality care to Ontario’s seniors and will support the long-term sustainability and
predictability of Leisureworld’s cash flow.”
The seven Class C homes, representing 1,127 beds and approximately 1,200 employees, are
located in Scarborough, Mississauga, Streetsville, North York, Brampton and Ingersoll,
Ontario. The homes achieved average annual occupancy of 95.0% for the fiscal year ended
December 31, 2007 (2006 - 90.48%). With the completion of this transaction, Leisureworld is
now the third largest provider of long-term care in Ontario with 26 LTC homes, representing
approximately 5.6% of all LTC homes in the province. Class A homes represent 52.4% of
Leisureworld’s portfolio, Class B homes, 6.9% and Class C homes, 40.7%.
Mr. Smith continued, “Leisureworld is dedicated to delivering the highest possible quality of
care to its residents and to offering an exceptional environment in each of its homes. We
anticipate a smooth transition and expect Leisureworld to make an immediate positive
contribution to its new homes and the communities they serve. ”
The $67-million acquisition, plus transaction and home refurbishment costs, was financed
through a credit facility established by Leisureworld. MPT and Macquarie International
Infrastructure Fund (“MIIF”), which owns the remaining 55% interest in Leisureworld, have
committed to make an aggregate equity contribution, in proportion to their ownership interest in
Leisureworld, of up to $15 million within the next 12 months.
About Macquarie Power & Infrastructure Income Fund
Macquarie Power & Infrastructure Income Fund invests in essential infrastructure assets in
North America with an emphasis on power infrastructure. MPT’s strategy is to acquire and
actively manage a high quality portfolio of diverse infrastructure assets to improve their
financial performance and provide growing and sustainable distributions to unitholders.
MPT’s portfolio includes investments in gas cogeneration, wind, hydro and biomass power
generating facilities, representing approximately 350 MW of installed capacity, and a 45%
indirect interest in Leisureworld Senior Care LP, a leading provider of long-term care, or social
infrastructure, in Ontario. MPT is managed by a wholly-owned subsidiary of Macquarie Group
Limited. Please visit www.macquarie.com/mpt for additional information.
Certain statements in this news release may constitute forward-looking statements, which involve known and unknown
risks, uncertainties and other factors that may cause the actual results to be materially different from any future results
expressed or implied by such forward-looking statements. Forward-looking statements use such words as “may”,
“will”, “anticipate”, “believe”, “expect”, “plan” and other similar terminology. These statements reflect current
expectations regarding future events and operating performance and speak only as of the date of this news release.
Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved.
A number of factors could cause actual results to differ materially from the results discussed in the forward-looking
statements, including, but not limited to: risks associated with the Fund’s gas cogeneration, wind, hydro and biomass
power generating assets and the power industry generally; risks associated with MPT’s interest in Leisureworld and
the long-term care sector; risks associated with the structure of MPT; and risks associated with business, regulatory
and economic conditions. The risks and uncertainties described above are not exhaustive and other events and risk
factors including risk factors disclosed in MPT’s filings with Canadian securities regulatory authorities could cause
actual results to differ materially from the results discussed in the forward-looking statements.
The forward-looking statements contained in this news release are based upon information currently available and
what the Fund currently believes are reasonable assumptions. However, the Fund cannot assure investors that actual
results will be consistent with these forward-looking statements. These forward-looking statements are made as of the
date of this news release, and the Fund and the Manager assume no obligation to update or revise them to reflect new
events or circumstances. The Fund cautions readers not to place undue reliance on any forward-looking statements,
which speak only as of the date made.
For further information, please contact:
Vice President & Chief Financial Officer
Tel: (416) 607 5198
Tel: (416) 649 1325