Welltower (NYSE: WELL) is buying a 38-community senior dwelling portfolio managed by Amica Senior Existence in Canada in a deal valued at $4.6 billion CAD.
The Toledo, Ohio-based actual property funding belief (REIT) famous in an announcement Sunday it’s shopping for the 38-community “ultra-luxury” portfolio together with 9 entitled growth parcels from the Ontario Lecturers’ Pension Plan for an equal of about $3.18 billion USD at at present’s alternate charge.
The portfolio contains communities in “extremely prosperous neighborhoods” in Toronto, Vancouver and Victoria, Canada and spans the care continuum from unbiased dwelling to reminiscence care, with a median size of keep between three and 4 years, in keeping with Welltower’s announcement.
Welltower anticipates the deal will shut within the fourth quarter of 2025. The REIT famous it’s at the side of the deal assuming a $560 million CAD mortgage with a median rate of interest of three.6% and a four-year weighted common maturity.
The REIT is also buying a minority curiosity in Amica’s administration firm, with the Amica administration crew holding on to a majority possession stake.
“Amica Senior Existence Co-founder, Robert Ezer, and CEO, Jens Cermak, share our imaginative and prescient on delivering a killer worth proposition for residents via the providing of premium hospitality and care and offering a dynamic atmosphere for website stage workers to develop and thrive,” Welltower CEO Shankh Mitra stated within the announcement.
Amica CEO Cermak stated he’s “thrilled” to enter into the partnership with Welltower.
“Our premium communities attraction to an prosperous and complicated inhabitants throughout Canada the place seniors are empowered to stay with freedom, optimism and peace of thoughts,” he stated. “Our portfolio has witnessed distinctive progress in recent times, and we strongly consider that this momentum will be sustained properly into the longer term.”
Welltower is with the transaction slated to realize a portfolio of 31 in-place properties which incorporates 24 stabilized communities and 7 not too long ago opened communities in lease-up. Welltower famous that the in-place portfolio is altering fingers “at a considerable low cost to estimated alternative price.”
“Welltower and Amica have paved the trail for a big future enlargement of Amica’s ultra-luxury, greater acuity product … beneath a extremely aligned RIDEA 5.0 contract,” the corporate wrote in its announcement.
Welltower’s acquisition additionally contains seven under-construction communities that the REIT famous “have been meticulously deliberate and curated all through growth timelines which have stretched practically a decade.” Welltower is buying the communities after they acquire certificates of occupancy, which the corporate expects to occur “in phases between 2025 and 2027.”
“This construction permits Welltower to eradicate growth danger whereas enabling the corporate to personal trophy property with untrended stabilized common RevPOR of over $12,000 [CAD],” the corporate’s announcement reads. “The 9 growth parcels Welltower plans to amass are situated in extremely prosperous and provide constrained neighborhoods and have been entitled via elongated and onerous processes which have spanned over 5 years on common, offering Welltower with vital future optionality.”
The common dwelling worth inside a kilometer of Amica’s communities ranges from about $2.2 million to $4 million CAD, the REIT famous in a March 2 enterprise replace. The 31 secure communities within the portfolio carry “vital pricing energy, reaching a high-single digit RevPOR progress CAGR over the previous 5 years, outperforming even the full Welltower SHO portfolio,” Welltower’s replace reads.
“Amica’s deal with ultra-luxury, greater acuity properties in Toronto, Vancouver, and Victoria supplies a pure complement in Canada to the decrease acuity mannequin of Cogir, Welltower’s best-in-class progress associate,” the replace reads.
Welltower has in the previous couple of years expanded its holdings in Canada. The corporate in 2023 expanded its relationship with Canadian and U.S. operator Cogir at the side of its announcement to develop a brand new administration platform north of the U.S. border. The REIT famous in its most up-to-date monetary filings it had 134 properties in Canada as of the tip of 2024, earlier than the take care of Amica.
The corporate additionally has ramped up its investments as of late. Within the first 45 days of this 12 months, the REIT had closed or secured beneath contract offers representing $2 billion in worth. In January, the corporate launched a brand new non-public funds administration enterprise and introduced the brand new enterprise is buying NorthStar Healthcare Earnings and its 40 senior housing communities in a $900 million transaction.
