Welltower Inc., an S&P 500 company headquartered in Toledo, Ohio, has agreed to acquire a portfolio of 86 seniors housing properties, currently owned by Holiday Retirement, for $1.58 billion.
The portfolio includes 80 nearly identical independent living (IL) and six combination independent living/assisted living (IL/AL) properties,
Welltower said the portfolio is valued at $152,000 per unit, representing a discount to estimated replacement cost in excess of 30%.
”Additionally, as announced on June 21, 2021, upon the closing date of this transaction, which is expected to be in the third quarter 2021, Atria Senior Living will assume operations of the properties and retain Holiday’s in-place senior management and staff,” said Weltower in a statement.
“We are excited to partner with Atria and Welltower as this transaction is squarely in line with Holiday’s long-term strategy. We believe the significant investment into Holiday’s platform, technology infrastructure and importantly, our communities, will enhance our collective ability to deliver quality services to the dynamic needs of our customers and to create a bright future for our employees,” said Holiday Retirement CEO Lilly Donohue.
“Welltower is thrilled to expand its strong partnership with Atria through the acquisition of this unique platform of assets,” said Shankh Mitra, Welltower CEO and CIO.
”The transaction is expected to be approximately $0.10 per diluted share accretive to Welltower’s normalized funds from operations during the first twelve months post-closing. The portfolio is expected to deliver substantial net operating income growth in future quarters and in coming years as occupancy growth accelerates from near-trough levels of 76.3% as of June 20, 2021. Portfolio occupancy has already increased over 2.7% since bottoming in March 2021,” said the company in the statement.
”This privately negotiated, operator driven transaction strategy is the key to our unique ability to navigate through complex situations and provide counterparties certainty of execution at unmatched speed due to our data analytics platform and our best in class team’s ability to structure win-win transactions. We are deeply familiar with the Holiday assets having looked at them multiple times in the past and have the utmost respect and admiration for Lilly and her team. We are delighted that we could finally align the interest of all parties, with strategic and value creation opportunity for Welltower’s shareholders,” Mitra continued.