In the largest seniors housing transaction recorded since 2021, Welltower is purchasing a portfolio of 38 high-end seniors housing communities and nine entitled development parcels in Canada for aggregate consideration of C$4.6 billion, or US$ $3.185 billion. The seller was Ontario Teachers’ Pension Plan, which made its initial platform investment in Amica in 2010 alongside co-founders Douglas MacLatchy and Robert Ezer.
The portfolio has grown to 24 stabilized, income-producing properties and seven recently opened properties still in lease up that are located in some of Canada’s most affluent markets in Toronto, Vancouver and Victoria. There is a continuum of care including independent living, assisted living, and memory care, with an average resident length of stay of three to four years. The stabilized assets have exhibited significant pricing power with RevPOR growth outperforming Welltower’s overall SHO portfolio over the past five years.
In conjunction with the transaction, Welltower announced the formation of a long-term, strategic, “RIDEA 5.0” partnership with Amica, which sees Amica’s management team own a majority of its management company and continue to operate the portfolio and Welltower owning a minority interest in the management company. Welltower also plans to acquire seven properties currently under construction that will be acquired upon the achievement of certificates of occupancy, which is expected to occur in stages between 2025 and 2027. Once open, the assets are expected to produce stabilized average RevPOR of over C$12,000, or US$8,300. The nine development parcels Welltower is looking to acquire are similarly located in highly affluent and supply constrained markets and have been entitled through long processes that have spanned over five years on average.
At closing of the in-place portfolio and development parcels, which is expected in the fourth quarter of 2025, subject to customary regulatory approvals, Welltower will assume C$560 million (US$388 million) of CMHC-insured debt with an average interest rate of 3.6% and a four-year weighted average maturity.
Goldman Sachs & Co. LLC served as lead sell-side financial advisor and CIBC Capital Markets and Newmark Group, Inc. also served as sell-side financial advisors. Stikeman Elliott LLP and Torys LLP served as sell-side legal advisors.
