The Ontario Teachers’ Pension Plan Board made nearly eight times its original investment when it recently agreed to sell Amica Senior Lifestyles and certain of its assets and affiliates for C$4.6 billion ($3.2 billion) to Welltower Inc., a senior housing-focused real estate investment trust.
The C$256 billion pension fund acquired the luxury senior home operator in 2015 through its BayBridge Seniors Housing subsidiary for C$578 million. The company owns, operates and develops private independent living, assisted living and memory care facilities for seniors in the Canadian provinces of Ontario and British Columbia.
According to a recent business update by Welltower, the breakdown of the acquisition is:
- C$3.2 billion for 31 in-place properties, which according to Welltower are being acquired “at a substantial discount to estimated replacement cost”;
- C$1.25 billion for seven properties under construction; and
- C$150 million for nine development parcels in “highly affluent and supply constrained neighborhoods.”
According to the Welltower announcement, when the acquisition of the in-place portfolio and development parcels closes, which it expects will happen in the fourth quarter of this year, Welltower will assume C$560 million of Canada Mortgage and Housing Corp.-insured, below-market debt at an average interest rate of 3.6%.
Ontario Teachers’ made its first investment in Amica in 2010, alongside its co-founders, Douglas MacLatchy and Robert Ezer.
Related Stories:
Ontario Teachers’ Pension, Nordic Capital Acquire Max Matthiessen
Ontario Teachers’ Pension Leads $150M Venture Round for Credit Card Startup Bilt
Ontario Teachers’ Pension Plan Earns 4.2% in 1st Half of 2024
Tags: Amica, Amica Senior Lifestyles, British Columbia, Douglas MacLatchy, Ontario, Ontario Teachers’ Pension Plan Board, OTPP, real estate investment trust, Robert Ezer, Senior Housing