Ontario Teachers’ Pension Plan is selling a portfolio of ultra-luxury Canadian seniors housing communities and land with approved development plans to real estate investment trust Welltower in a C$4.6bn (€3bn) deal.
The Canadian pension fund has agreed to sell senior housing operator Amica Senior Lifestyles in a deal that involves a portfolio of 38 senior housing communities and nine entitled development parcels, including a 31-property in-place portfolio valued at C$3.2bn.
Amica operates senior living residences in Canada, with a business model that integrates ownership, operation and development of independent living, assisted living and memory care facilities in Ontario and British Columbia. The company’s portfolio includes 31 income-producing properties and 7 properties under construction.
Ontario Teachers’ made its initial investment in Amica in 2010, alongside co-founders Douglas MacLatchy and Robert Ezer.
Terry Woodward, senior MD, private capital, at Ontario Teachers’, said: “For more than a decade, we have supported the company’s management team as they have grown the platform.
“We are excited to watch the company reach new heights in the future and wish Amica, the management team, and Welltower continued success in their next stage of growth.”
Shankh Mitra, Welltower’s CEO, said: ”We are delighted to announce the acquisition of the Amica portfolio, the highest quality senior housing portfolio in North America. These communities will join the top echelons of the Welltower portfolio, reflected by their location within the most desirable neighbourhoods 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.”
Jens Cermak, Amica’s CEO, said: ”Our premium communities appeal to an affluent and sophisticated population across Canada where seniors are empowered to live with freedom, optimism and peace of mind.
“Our portfolio has witnessed exceptional growth in recent years, and we strongly believe that this momentum can be sustained well into the future.”
Ezer, CIO at Amica, said: “For the last 15 years, Ontario Teachers’ has acted as an extension of our internal team. We are grateful for how they’ve supported our strategic ambitions, and we are now looking forward to working and partnering with the team at Welltower to help carry this growth momentum forward.”
MacLatchy, vice chairman at Amica, said: “Amica has always been dedicated to providing exceptional senior living experiences.
“Our commitment to quality and innovation has allowed us to create a welcoming and supportive environment for our residents. We take pride in the positive impact we have made in their lives and the communities we serve.”
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