TOLEDO, OHIO—Another day, another acquisition in the health care real estate industry.

Health Care REIT announced Wednesday morning it had entered into an agreement to acquire Canadian-based HealthLease Properties REIT in a cash deal valued at $950 million, including the assumption of debt. HealthLease's portfolio includes 53 high-quality seniors housing, post-acute care and long-term care communities.

Health Care REIT has also agreed to acquire 17 acute care communities under construction from Mainstreet Property, which manages HealthLease, for an additional $369 million. The two related transactions will add about 100 properties to Health Care REIT's portfolio and positions it for further expansion as it has also acquired the right to another 45 development projects by Mainstreet. These so-called "next generation" projects are valued at about $1 billion with a 7.7% initial cash yield and managed under long-term triple-net lease agreements. This portfolio is expected to close in tranches when construction is completed starting in 2016 through the first quarter of the following year.

In total, the transaction represents a potential $2.3 billion investment at a 7.4% blended initial cash yield. It is projected to be immediately accretive to earnings.

Health Care REIT recently reported second quarter earnings that illustrated, among other things, the importance acquisitions has to its portfolio growth. The company completed $579 million of investments for the quarter including $455 million in acquisitions, $44 million in development funding, $76 million in loan advances and $4 million in capital improvements.

The $455 million of acquisitions have a blended initial yield of 6.5%, it said, and were primarily with existing relationships. They include ten medical office buildings, a post-acute property operated by Genesis, a seniors housing operating property managed by Revera and eight seniors housing triple-net properties operated by existing partners.

It is a similar story throughout the rest of the sector. Acquisitions, followed by development, are seen as essential to growth. Earlier this month NorthStar Realty Finance Corp. announced it was acquiring Griffin-American Healthcare REIT II in a $4-bilion stock-and-cash acquisition, which includes the assumption of $600 million in debt.