TOLEDO, Ohio — REIT Welltower Inc. is under contract to acquire a seniors housing portfolio located in Canada for C$4.6 billion ($3.2 billion). In addition to 38 ultra-luxury communities, the acquisition includes nine entitled development parcels. Ontario Teachers’ Pension Plan is the seller.
Located throughout neighborhoods in Toronto, Vancouver and Victoria, the communities include 31 in-place properties as well as seven communities under construction. Of the 31 in-place communities, 24 are stabilized, with seven recently opened properties still undergoing the lease-up process. The under-construction communities will be acquired upon the achievement of certificates of occupancy, which is expected to occur between 2025 and 2027.
Amica Senior Lifestyles operates the communities and will form a long-term strategic partnership with Welltower. The Amica properties offer a continuum of care, including independent living, assisted living and memory care units. Welltower will also acquire a minority interest in Amica’s management company.
“We are delighted to announce the acquisition of the Amica portfolio, the highest quality senior housing portfolio in North America,” says Shankh Mitra, CEO of Welltower. “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.”
Upon the closing of the acquisition of the in-place portfolio and development parcels, which is expected in the fourth quarter of this year, Welltower will assume C$560 million of CMHC-insured debt.