Welltower(WELL) Prnewswire·2025-03-02 20:48Core Viewpoint - Welltower Inc. is set to acquire a portfolio of 38 ultra-luxury seniors housing communities and nine entitled development parcels from Ontario Teachers' Pension Plan for a total of C3.2 billion [1][2] Group 1: Acquisition Details - The acquisition includes 31 in-place properties, consisting of 24 stabilized communities and seven recently opened properties, acquired at a substantial discount to estimated replacement cost [2][3] - Welltower plans to acquire seven properties currently under construction, which are expected to achieve certificates of occupancy between 2025 and 2027, allowing the company to mitigate development risk [3] - The nine development parcels are located in affluent neighborhoods and have undergone lengthy entitlement processes, providing Welltower with significant future optionality [3] Group 2: Strategic Partnership - Welltower has formed a long-term strategic partnership with Amica Senior Lifestyles, a leading operator of luxury seniors housing communities, to enhance value creation through superior operational and development capabilities [1][2] - The partnership aims to expand Amica's ultra-luxury, higher acuity product offerings in targeted neighborhoods, with Amica continuing to manage the properties under a RIDEA 5.0 contract [2][4] Group 3: Market Context and Expectations - The acquisition is positioned against a backdrop of rapidly growing demand for senior housing and limited new supply, which is expected to drive significant revenue and cash flow growth for Welltower in the coming years [2] - The Amica communities provide a continuum of care, allowing residents to age in place, which contributes to an average resident length of stay of 3-4 years [4] - Welltower will assume C$560 million of CMHC-insured debt with an average interest rate of 3.6% upon closing, expected in the fourth quarter of 2025 [5]