TOLEDO,
Ohio, March 2, 2025 /PRNewswire/ -- Welltower
Inc. (NYSE: WELL) ("Welltower" or the "Company") today
announced that it is under contract to acquire a portfolio of
38 ultra-luxury seniors housing communities and nine entitled
development parcels, including a 31-property in-place portfolio
valued at C$3.2 billion, from
Ontario Teachers' Pension Plan for aggregate consideration of
C$4.6 billion. The irreplicable
and trophy portfolio is located within highly affluent
neighborhoods in Toronto,
Vancouver and Victoria. In conjunction with the transaction,
Welltower also announced the formation of a long-term strategic
partnership with Amica Senior Lifestyles ("Amica"), a preeminent
seniors housing owner/operator of category-defining luxury
communities with a long-term track record of substantial value
creation through superior operational and development acumen.
"We are delighted to announce the acquisition of the Amica
portfolio, the highest quality senior housing portfolio in
North America," said Shankh Mitra,
Welltower's CEO. "These communities will join the top echelons of
the Welltower portfolio, reflected by their location within the
most desirable neighborhoods in all of Canada and ultra-luxe amenities and finishes.
Against a backdrop of rapidly growing demand and limited new
supply, we expect the portfolio to drive outsized revenue and cash
flow growth in the coming years." Mr. Mitra added, "We are
also excited to announce the establishment of a long-term
partnership with the Amica management team. Amica Senior Lifestyles
Co-founder, Robert Ezer, and CEO,
Jens Cermak, share our vision on
delivering a killer value proposition for residents through the
offering of premium hospitality and care and providing a dynamic
environment for site level employees to grow and thrive."
The transaction includes 31 in-place properties comprised of 24
stabilized communities and seven recently opened properties still
in lease up. The in-place properties are being acquired at a
substantial discount to estimated replacement cost. The stable
Amica assets have exhibited significant pricing power with RevPOR
growth even outperforming Welltower's overall SHO portfolio over
the past five years. Welltower and Amica have paved the path for a
significant future expansion of Amica's ultra-luxury, higher acuity
product within their target Toronto, Vancouver, and Victoria neighborhoods through a long-term
strategic partnership and Amica's continued management of the
properties under a highly aligned RIDEA 5.0 contract.
In addition to the in-place portfolio, Welltower plans to
acquire seven properties currently under construction that have
been meticulously planned and curated throughout development
timelines that have stretched nearly a decade. The
under-construction properties will be acquired upon the achievement
of certificates of occupancy, which is expected to occur in stages
between 2025 and 2027. This structure allows Welltower to eliminate
development risk while enabling the Company to own trophy assets
with untrended stabilized average RevPOR of over C$12,000. The nine development parcels Welltower
plans to acquire are located in highly affluent and supply
constrained neighborhoods and have been entitled through elongated
and onerous processes that have spanned over five years on average,
providing Welltower with significant future optionality.
The Amica communities provide a continuum of care including
independent living, assisted living, and memory care, allowing
residents to age in place and helping to drive an average resident
length of stay of 3-4 years. Amica has an unparalleled track record
in managing and developing luxury seniors housing communities,
enabling it to successfully target highly affluent neighborhoods
while serving an unmet need of a rapidly aging population through
its higher acuity offering given the Canadian senior housing
industry's greater focus on independent living. As part of the
transaction, Welltower will acquire a minority interest in Amica's
highly regarded management company with the Amica management team
owning the majority interest, driving further alignment.
"We are thrilled to announce our long-term partnership with
Welltower, which shares our passion for providing the highest
quality care and services to the seniors population. We also
believe that we will be key beneficiaries of Welltower's
industry-leading data science capabilities which will help scale
our platform," said Jens Cermak,
Amica's CEO. "Our premium communities appeal to an affluent and
sophisticated population across Canada where seniors are empowered to live
with freedom, optimism and peace of mind. Our portfolio has
witnessed exceptional growth in recent years, and we strongly
believe that this momentum can be sustained well into the
future."
At closing of the in-place portfolio and development parcels,
which is expected in the fourth quarter of 2025, subject to
customary regulatory approvals, Welltower will assume C$560 million of CMHC-insured, debt with an
average interest rate of 3.6% and a four-year weighted average
maturity.
About Welltower
Welltower Inc. (NYSE: WELL), a real estate investment trust
("REIT") and S&P 500 company headquartered
in Toledo, Ohio, is driving the transformation of health
care infrastructure. Welltower invests with leading seniors
housing operators, post-acute providers and health systems to fund
the real estate infrastructure needed to scale innovative care
delivery models and improve people's wellness and overall health
care experience. Welltower owns interests in properties
concentrated in major, high-growth markets in the United
States, Canada and the United Kingdom, consisting of
seniors housing and post-acute communities and outpatient medical
properties.
Forward-Looking Statements
This press release contains "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995.
When Welltower uses words such as "will," "expect" or
similar expressions that do not relate solely to historical
matters, Welltower is making forward-looking statements.
Forward-looking statements are not guarantees of future performance
and involve risks and uncertainties that may
cause Welltower's actual results to differ materially
from Welltower's expectations discussed in the
forward-looking statements. This may be a result of various
factors, including, but not limited to: the possibility that
the anticipated benefits of the transaction are not realized when
and as expected or at all, including as a result of the impact of,
or issues arising from, the integration of the acquired properties
into Welltower's operation; Welltower's ability to consummate
the long-term strategic partnership with Amica on currently
anticipated terms, or within currently anticipated timeframes, and
the expected performance of the strategic
partnership. Welltower undertakes no obligation to update
or revise publicly any forward-looking statements, whether because
of new information, future events or otherwise, or to update the
reasons why actual results could differ from those projected in any
forward-looking statements.
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SOURCE Welltower Inc.
