Welltower (NYSE: WELL) on Monday announced it had recently invested a whopping $14 billion to acquire more than 700 senior housing communities, comprising more than 46,000 units in the U.K., U.S., and Canada.
The Toledo, Ohio-based real estate investment trust (REIT) is funding its new transaction via asset sales, loan payoffs “and other capital recycling activity” to the tune of $9 billion, Welltower management said in an announcement.
Included in Welltower’s $14 billion acquisition total was a new deal with Barchester Healthcare to acquire 284 communities in the U.K. for a sum totaling more than $6.9 billion in today’s exchange rates. Welltower had previously sought to acquire the company and its care homes years ago, but ultimately did not buy it.
The portfolio is composed of 111 communities managed by Barchester under an aligned RIDEA contract with Welltower, 152 communities leased under triple-net agreements and 21 developments slated to be managed in a RIDEA agreement once they open.
The REIT also is under contract or has closed an additional $4 billion of senior housing acquisitions representing nearly 40 transactions and more than 150 communities. The deal includes “trophy senior housing communities” in the U.S. East Coast region, including in Boston and Westchester County, New York.
Welltower also moved from lender to owner of its portfolio with U.K.-based HC-One. The company funded its purchase through an agreement totaling more than $1.6 billion in today’s exchange rates.
“The HC-One loan was originally structured with embedded warrants and an equity stake and was intentionally designed to provide Welltower with both downside protection and meaningful upside participation. These structural features enabled us to play a lead role in the borrower’s recapitalization process, ultimately transforming a finite-maturity loan into a long-term ownership position aligned with Welltower’s growth strategy,” Welltower CEO Shankh Mitra said.
This is a developing story that will be updated.
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