Welltower Exits Genesis HealthCare Relationship, Cozies Up To ProMedica

Welltower will exit its operating relationship with Genesis HealthCare as it sells 51 wholly-owned skilled-nursing facilities through a series of transactions that will deploy approximately $745 million of anticipated proceeds into new opportunities, the company has announced.

Welltower will sell 42 traditional skilled nursing facilities for $680 million to a joint venture in which it will retain a participating preferred equity position. Of those, 35 traditional skilled nursing facilities will be sold for approximately $500 million to a joint venture comprised of Welltower, Aurora Health Network, and Peace Capital. Welltower has entered into a forward sale agreement valued at $182 million for seven skilled nursing facilities it currently sub-leases to Genesis and for which Welltower owns a bargain purchase option that can be executed in April 2023. The Aurora Health Network joint venture is intended to close at the same time Welltower exercises its bargain purchase option, Welltower said in a statement.