Ventas is investing in C$2.4 billion (USD$1.8 billion) Canadian seniors housing portfolio through an 85/15 percent equity partnership with Le Groupe Maurice (“LGM”).
Ventas, Inc. (NYSE: VTR), a real estate investment trust (REIT) with a diversified portfolio of approximately 1,200 seniors housing, healthcare and research properties in the United States, Canada and the United Kingdom, has entered into a definitive agreement with Le Groupe Maurice to acquire 31 Class A seniors housing communities and four in-progress developments in Quebec market.
LGM, a market leader in the design, development and management of seniors housing communities in Quebec , will continue to manage and further develop the portfolio under the Le Groupe Maurice brand.
Ventas will also have exclusive rights to fund and own all additional developments under a pipeline agreement with LGM.
The 31 Class A senior housing communities are forecast to deliver four percent compound annual growth in net operating income (“NOI”) over the next five years.
The four in-progress developments expected to contain about 1,400 units in attractive locations in Montreal that are projected to open in late 2020 and 2021.
“We are delighted to announce this accretive investment with Le Groupe Maurice to obtain a strong portfolio with built-in growth potential from existing and new developments in high-quality, attractive urban markets,” said Ventas Chairman and Chief Executive Officer, Debra A. Cafaro.
“This transaction demonstrates the Ventas team’s commitment to our pivot to growth as we execute on accelerating external growth opportunities. The transaction enhances and diversifies our leading portfolio and underscores our successful strategy of partnering with best-in-class operators and developers,” Cafaro added.
The President and Founder of Le Groupe Maurice, Luc Maurice, said: “We have built a leading seniors housing business over 20 years with very strong brand awareness and market share across Quebec through a commitment to quality and an energetic independent lifestyle for our residents. Le Groupe Maurice’s team and employees are excited about this partnership with Ventas and we look forward to expanding the business and capitalizing on the significant opportunities we see in the growing and attractive Canadian senior housing market.”
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