- What Ontario Teachers’ Pension Plan is selling its Amica Senior Lifestyles portfolio
- Why Welltower agreed to pay $4.6bn for Amica’s in-place facilities, under-construction properties and development sites
- What next The first part of the deal will close in Q4
Ontario Teachers’ Pension Plan is selling its Amica Senior Lifestyles portfolio to Welltower for $4.6bn.
Ohio-based Welltower is under contract to acquire 31 luxury senior housing properties, valued at $3.2bn, as well as seven under-construction communities and nine entitled development parcels.
Of the existing communities, 24 are stabilized assets while the remaining seven are still in their lease-up periods. The properties are in major markets across the country including Toronto, Vancouver and Victoria. They include independent living, assisted living and memory care facilities.
The under-construction properties will be acquired once certificates of occupancy are obtained, which is expected to occur in stages from 2025 to 2027. Welltower said this will allow the firm to eliminate development risk.
The development parcels are in “highly affluent and supply-constrained neighbourhoods,” Welltower said, and were entitled over the course of more than five years.
As part of the transaction, Welltower also will acquire a minority interest in Amica’s management company. Amica’s management team will own the majority interest.
Welltower is expected to close on the in-place portfolio and development sites in Q4. At that time, the company will assume $560m of CMHC-insured debt with an average interest rate of 3.6% and a four-year weighted average maturity.
Welltower is a publicly traded REIT headquartered in Toledo. It owns interests in senior housing, post-acute communities and outpatient medical properties in Canada, the U.K. and the U.S.
