Ventas to Lease 30 Elmcroft Communities to New Kai Hsiao Venture

Emlcroft Senior Living operates Elmcroft of Point Loma, a memory care community in San Diego. The specific properties Ventas plans to move to a new operator were not disclosed. Emlcroft Senior Living operates Elmcroft of Point Loma, a memory care community in San Diego. The specific properties Ventas plans to move to a new operator were not disclosed.

CHICAGO — Ventas (NYSE: VTR) is planning to transfer operations of 30 of its communities from Elmcroft Senior Living to a new company led by industry veteran Kai Hsiao, according to Ventas CEO Deb Cafaro on this week’s third-quarter earnings call.

The move is part of a new joint venture Ventas is forming with an undisclosed institutional partner, intending to diversify the company’s capital sources and operational partnerships.

“To seed the new company, we intend to transition operations of the Elmcroft portfolio to Kai and his team, whose company will be a valuable addition to our existing operator relationships,” said Cafaro.

This is the first the industry has heard of Hsiao’s new company, and Cafaro provided few details on the move.

“While we still have a lot of work to do to finalize these attractive potential transactions, we are well down the path and expect to complete them in early 2018,” said Cafaro.”

Based in Chicago, Ventas is a publicly traded healthcare REIT and one of the largest owners of seniors housing properties in the United States. The company’s stock price closed at $62.75 on Tuesday, Oct. 31, down from $65.14 one year ago.

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