August 4, 2016
TOLEDO, OH–Welltower Inc. (NYSE: HCN) today announced it has entered into a definitive agreement to acquire a portfolio of properties operated by Vintage Senior Living for a purchase price of $1.15 billion. The transaction comprises 19 properties offering a combination of independent living, assisted living and memory care communities in premium locations concentrated in Southern and Northern California, including the Los Angeles and San Francisco metro markets, and in the state of Washington. Welltower will transition management of these communities to three of its best-in-class operating partners, Senior Resource Group (11 properties), Sunrise Senior Living (7 properties) and Silverado (1 property), once the acquisition has been completed.
"This acquisition reinforces our high-quality health care real estate portfolio and leading presence in two of the top U.S. metro markets," said Tom DeRosa, Chief Executive Officer of Welltower. "We have a unique platform for delivering operational improvements and driving value for our shareholders. Together with our operating partners, we are excited about the opportunities to provide the best senior care with a focus on wellness and innovation."
The acquisition expands Welltower's leadership in core West Coast markets, where the company has an extensive portfolio of seniors housing, post-acute care and outpatient medical properties and relationships with leading local operating partners. Inclusive of this acquisition, Welltower owns 114 health care properties in California, and will be the largest owner of seniors housing properties in both Southern and Northern California.
"These properties are in attractive markets including irreplaceable locations near San Francisco's Golden Gate Park and Nob Hill, with a growing population of seniors, favorable supply-and-demand fundamentals and high barriers to entry," said Scott Brinker, Welltower's Chief Investment Officer. "Our long-term partnership approach, business expertise and unmatched local scale give Welltower and its operating partners significant opportunities to enhance the services offered at the properties and create value for our shareholders."
Welltower's investment approach prioritizes premium assisted living and memory care communities that focus on wellness and its positive health care impact. The company's operating partners promote wellness through better nutrition, cognition and mobility; a sense of community and social interaction; and connectivity with health care providers to ensure better care, faster intervention and recovery, reduced risk of hospitalizations and more efficient care delivery.
Vintage Senior Living will continue to operate its communities until the purchase has been completed. The transaction is expected to close in tranches beginning in September 2016, and will be subject to lenders' approvals and customary regulatory approvals. Welltower and Vintage will work to ensure a smooth transition of management and operations to SRG, Sunrise and Silverado to provide seamless continuity for residents and staff.