Healthcare real estate company Invesque Inc. has entered into a definitive agreement to acquire 20 private pay senior living communities comprising 1,440 units with 1,716 beds and Commonwealth Senior Living, LLC for a purchase price of US$340.4 million . The Transaction, which is subject to customary closing conditions, is expected to close in the third quarter of 2019.
The Portfolio is strategically clustered in attractive and growing markets across Virginia and Pennsylvania with an average effective age of approximately 10 years. Invesque will obtain an exclusive right of first offer on three additional communities that are currently, and will continue to be, managed by Commonwealth post-closing. The Portfolio is expected to complement Invesque’s existing platform and expand its presence in both Virginia and Pennsylvania.
The Portfolio comprises 1,440 private pay independent living, assisted living and memory care units with an aggregate resident capacity of 1,716 beds. The Transaction meaningfully increases Invesque’s exposure to private pay seniors housing, which is expected to represent approximately 52% of the Company’s consolidated net operating income (“NOI”) post-closing.
Upon the closing of the Transaction, Invesque will have over US$1.8 billion of asset value with 122 properties and 10,844 beds strategically located in growing markets across 20 U.S. states and two Canadian provinces.
Together with the Portfolio, the Company will acquire the Commonwealth management team. These long-tenured and highly respected seniors housing operators will serve as the foundation for Invesque to build a vertically integrated, regional operating and management model within its existing seniors housing portfolio
“We are thrilled to partner with Commonwealth and acquire this attractive portfolio of seniors housing properties” said Scott White, Chairman of the Board of Directors and CEO of the Company. “We have long believed alignment is the key to a successful partnership, and the Commonwealth acquisition allows us to vertically integrate with a leading regional operator. Furthermore, this transaction positions our portfolio well as we continue our focus on creating a diversified healthcare real estate company. Following this acquisition, we will have a larger and stronger platform to finance growth and take advantage of market fragmentation in the healthcare industry to create value for our shareholders.”
Following completion of the transaction, Commonwealth’s senior management team will continue to manage and operate the Portfolio.
“We are excited to partner with Invesque as we continue to execute on delivering outstanding support to our associates and exceptional care to our residents” said Richard Brewer, CEO of Commonwealth. “The Invesque transaction is a win-win for our investors and our team and will allow us to continue to grow and provide high quality services for years to come.”
BMO Capital Markets is serving as financial advisor to Invesque. Barack Ferrazzano Kirschbaum & Nagelberg LLP is serving as Invesque’s primary legal counsel with assistance from Goodmans LLP and other law firms. Houlihan Lokey Capital, Inc. is serving as financial advisor to Commonwealth. Burr & Forman LLP is serving as Commonwealth’s legal counsel.
Source: Invesque Inc