Health Care REIT Inc. (HCN:US) agreed to buy a 75 percent stake in 47 senior housing communities in Canada from Revera Inc. for about $1 billion in cash and assumed debt.
Revera, Canada’s second-largest operator of senior housing and long-term care facilities, will continue to manage the properties, Health Care REIT said in a statement today. The deal includes communities in Toronto, Ottawa, Vancouver, Calgary, Saskatoon and Winnipeg.
“We now own more than 13,000 units of private pay seniors housing in Canada, with a concentration in infill locations in major metropolitan markets” in partnership with two local operators, Health Care REIT Chairman and Chief Executive Officer George L. Chapman said in the statement.
Demand for assisted-living and senior housing is expected to rise as Canada’s population ages. The number of residents age 65 and over will double through 2036, according to the government’s Human Resources and Skills Development Canada agency.
Health Care REIT, based in Toledo, Ohio, will use $697 million of cash to pay for the purchase and take on about $314 million of mortgage debt. It owns 1,133 property portfolios in the U.S., U.K. and Canada. Revera, based in Mississauga, Ontario, manages 20,000 senior home and long-term care units, according to today’s statement.
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