Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the debt and equity markets, click here.)

TORONTO-The Reichmann family has sold 67 healthcare and housing properties to Ventas for $649 million. The move effectively scuppers plans announced in April to float the bundled assets on the Toronto Stock Exchange.

The properties are located in 16 states and include five properties in southern California, 19 United Rehab properties mainly in Kentucky, eight Elmcroft assisted-living communities in the Southeast and 33 Outlook Pointe assisted-living properties in the mid-Atlantic region.After completion of the deal, Ventas will lease the properties to Senior Care Inc. subsidiaries under a 15-year agreement with two five-year extensions.

The deal will add about $50 million in annual rent to the Ventas rental income. Ventas will use a combination of cash and equity to fund the deal. The company will issue about 1.7 million common shares worth about $65 million to the Reichmann family at the close of the deal. The cash portion of the purchase price will be funded through the assumption of up to $30 million of existing secured debt as well as with borrowings from Ventas’ credit line and expected debt issues.

The deal effectively terminates plans by Reichmann International Development Corp. to float the bundled assets on the Toronto Stock Exchange. Senior Care REIT filed an initial prospectus in April for a public offering, but according to a Dow Jones report Thursday, plans to float the new entity were put on hold once Ventas emerged as a prospective bidder.

“This acquisition exemplifies the continued execution of our strategic growth and diversification plan,” says Debra A. Cafaro, Ventas chairman, president and chief executive, in the statement. “In one step, we are adding an important new tenant relationship, acquiring a diverse portfolio of assets with a large component of private pay revenues and continuing our commitment to strong internal growth from rental escalations,” she says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.