Transactions - JUNE 4, 2014

Ventas spends $3.5b in two transactions

by Andrea Waitrovich

Ventas has agreed to a pair of deals totaling $3.5 billion, expanding its ownership in the senior housing and medical sector.

The Chicago-based REIT agreed to buy American Realty Capital Health Care Trust for $2.6 billion in cash and shares. The deal is targeted to close during fourth quarter 2014. The acquisition still needs to be approved from ARC Health Care stockholders.

With the ARC Healthcare acquisition, Ventas would add 143 properties, comprising medical office buildings and senior housing communities, to its portfolio. Some of ARC Health Care’s assets include the 55,000-square-foot 16 New Scotland MOB in Albany, N.Y.; the two-building Athens Medical Complex in Athens, Ga.; the 88,390-square-foot Aurora Medical Office in Hartford, Wis.; and the Aurora Medical Center in Two Rivers Wis.

Ventas owned 1,029 medical office buildings and senior housing communities as of Dec. 31, 2013.

Separately, the REIT is purchasing 29 independent living senior housing communities in Canada from Holiday Retirement for approximately $900 million in cash. That deal is expected to close in the third quarter.

The properties, all of which are independent living and total 3,354 units, are located in seven Canadian provinces, with the majority concentrated in Toronto and the province of Alberta.

Upon closing, the communities will be operated by Louisville, Ky.–based Atria Senior Living. Following the transaction, Atria will manage 173 communities for Ventas.

Atria, along with Sunrise Senior Living, represents 51 percent of Ventas’ senior housing operating portfolio, with the remaining 49 percent comprising triple-net leases.

The acquisition of the Holiday Retirement communities will expand Ventas’ international presence in Canada from two provinces to seven. The communities constitute Holiday Retirement’s entire Canadian portfolio.

In October 2013, Ventas acquired a 26-property portfolio of independent living communities from Holiday Retirement for around $790 million.

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