Blackstone exits Wexford’s life science and medical real estate assets

Blackstone has sold Wexford Science & Technology‘s life science and medical real estate assets to Ventas Inc. The price of the acquisition was $1.5 billion.

PRESS RELEASE

CHICAGO–(BUSINESS WIRE)–Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) today announced that it has completed its previously announced acquisition of substantially all of the life science and medical real estate assets of Wexford Science & Technology, LLC (“Wexford”) from affiliates of Blackstone Real Estate Partners VIII L.P. for $1.5 billion in cash.

“We are pleased to complete this accretive transaction, which marks Ventas’s entry into the attractive life science business and provides even more diversified, reliable income and growth for our shareholders,” said Ventas Chairman and Chief Executive Officer Debra A. Cafaro. “With attractive real estate leased by top universities, academic medical centers and research companies, and a strategic partnership with leading developer Wexford, the transaction adds high quality properties and establishes a new platform for growth. With Wexford’s portfolio, we are further solidifying Ventas’s position as the leading capital provider at the intersection of healthcare and real estate.”

The acquired portfolio includes 23 operating properties that contain 4.1 million square feet, are 97 percent leased and represent a 2017 cash yield of 6.8 percent. Ventas also acquired two development assets pre-leased to Duke University and Wake Forest University that are expected to produce a stabilized unlevered yield of approximately 7.5 percent. Finally, Ventas acquired nine development sites principally contiguous to existing assets, two of which present near term development opportunities.

Wexford will continue to manage the portfolio. As part of the acquisition, Ventas also entered into a long term management and pipeline agreement with Wexford, whereby Ventas will have exclusive rights to jointly develop future projects with Wexford, which will be independently owned and operated by its experienced, existing management team.

“We are delighted to partner with Ventas and we see great opportunities ahead as we continue to manage our existing high-quality portfolio,” said Jim Berens, President of Wexford. “The combination of Wexford’s development expertise and relationships together with Ventas’s financial strength and long-term commitment should enable us to serve our clients, develop exciting new projects and grow our business significantly.”

The transaction is expected to be immediately accretive to the Company’s normalized funds from operations (“FFO”) per share. The impact of the transaction is already reflected in the Company’s 2016 normalized FFO per share guidance range of $4.05 to $4.13 issued in its July 29, 2016 press release. Ventas funded the transaction with $736 million in equity raised in July 2016, cash on hand and draws on its revolving credit facility.

About Ventas
Ventas, Inc., an S&P 500 company, is a leading real estate investment trust. Its diverse portfolio of approximately 1,300 assets in the United States, Canada and the United Kingdom consists of seniors housing communities, medical office buildings, life science buildings, skilled nursing facilities, specialty hospitals and general acute care hospitals. Through its Lillibridge subsidiary, Ventas provides management, leasing, marketing, facility development and advisory services to highly rated hospitals and health systems throughout the United States. More information about Ventas and Lillibridge can be found at www.ventasreit.com and www.lillibridge.com.

About Wexford
Wexford Science & Technology, LLC is a real estate company exclusively focused on partnering with universities, academic medical centers and research companies. Wexford targets strategic opportunities with top-tier research universities that are directly on or contiguous to dense, urban campuses.