Toledo, Ohio-based Welltower Inc. (NYSE: HCN), and China’s Cindat Capital Management Ltd and Union Life Insurance Co. Ltd, said they agreed to form a joint venture to invest in a Welltower portfolio of seniors housing and long-term/post-acute care real estate assets. The $930M deal represents Cindat’s first U.S. health care real estate investment.
The portfolio is comprised of 11 seniors housing properties master leased to Brookdale Senior Living (NYSE: BKD) and 28 long-term/post-acute care facilities master leased to Genesis Healthcare Inc. (NYSE: GEN). Cindat and Union Life will own a 75% interest, with Welltower retaining a 25% interest.
“With aging demographics and U.S. healthcare trends driving the need for innovative health care infrastructure, we believe the sector represents an attractive long-term investment opportunity,” said Greg Peng, CEO at Cindat Capital Management, representing Cindat and Union Life. “We are pleased to announce this partnership with Welltower, the leader in health care real estate. We have a significant appetite for investing in the sector and we look forward to a mutually beneficial relationship with Welltower to capitalize on this unique opportunity.”
“We’re excited to welcome Cindat and Union Life to our global group of capital partners. The group provides Welltower with a strategic and alternative capital source which will allow us to continue to drive growth and unlock value for our shareholders while positioning our portfolio for opportunities at the forefront of health care and aging trends,” said Tom DeRosa, CEO of Welltower.
Brookdale provides services including independent living and assisted living options for the elderly, and Genesis provides skilled nursing for people with chronic conditions and post-acute care for patients recovering from illnesses and medical procedures.
Brookdale and Genesis will continue to be the day-to-day operators of their respective properties and provide continuity for residents and staff.
The deal is expected to close by year end and is subject to customary closing conditions.
Cindat is a Chinese real estate investment platform founded in 2013, with offices in Beijing, Shanghai and New York City. Since inception, Cindat has invested in more than $6 billion worth of real estate assets in the U.S., the U.K., Australia, and China.
Union Life, with over $13 billion in assets, is one of China’s leading life insurance companies. Its overseas investment activity from mid 2014 until today includes $100 million in U.S. senior housing real estate.
Welltower is a real estate investment trust (REIT) with more than 1,400 properties in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.