Cindat Capital Management Limited and Union Life Insurance Co Ltd have agreed to invest $930 million in Welltower’s portfolio of senior housing and long-term/post-acute real estate assets. According to terms of the deal, Cindat and Union Life will own a 75 percent stake with Welltower retaining a 25 percent interest. The transaction is expected to close by the end of the year.
TOLEDO, OHIO & BEIJING–(BUSINESS WIRE)–Welltower Inc. (NYSE:HCN), Cindat Capital Management Limited (“Cindat”) and Union Life Insurance Co. Ltd (“Union Life”) announced today that they have entered into a definitive agreement to form a joint venture to invest in a Welltower portfolio of seniors housing and long-term/post-acute care real estate assets. The US $930M transaction represents Cindat’s first U.S. health care real estate investment.
The portfolio is comprised of 11 seniors housing properties master leased to Brookdale Senior Living (NYSE:BKD) and 28 long-term/post-acute care facilities master leased to Genesis Healthcare, Inc. (NYSE:GEN). Cindat and Union Life will own a 75% interest, with Welltower retaining a 25% interest.
“With aging demographics and U.S. healthcare trends driving the need for innovative health care infrastructure, we believe the sector represents an attractive long-term investment opportunity,” said Greg Peng, CEO at Cindat Capital Management, representing Cindat and Union Life. “We are pleased to announce this partnership with Welltower, the leader in health care real estate. We have a significant appetite for investing in the sector and we look forward to a mutually beneficial relationship with Welltower to capitalize on this unique opportunity.”
“We’re excited to welcome Cindat and Union Life to our global group of capital partners. The group provides Welltower with a strategic and alternative capital source which will allow us to continue to drive growth and unlock value for our shareholders while positioning our portfolio for opportunities at the forefront of health care and aging trends,” said Tom DeRosa, CEO of Welltower.
Brookdale provides services including independent living and assisted living options for the elderly, and Genesis provides skilled nursing for people with chronic conditions and post-acute care for patients recovering from illnesses and medical procedures. Brookdale and Genesis will continue to be the day-to-day operators of their respective properties and provide continuity for residents and staff.
The transaction is expected to close by year end and is subject to customary closing conditions.
About Cindat and Union Life
Cindat Capital Management Limited (“Cindat”), a China-based investment management platform founded in 2013, works to guide and safeguard Chinese institutional and private capital in overseas real estate investments. With offices in Beijing, Shanghai and New York City, Cindat is a premier real estate investment platform backed by China Cinda Asset Management Co. Since inception, Cindat has invested in more than $6 billion worth of real estate assets in the U.S., the U.K., Australia, and China.
For more information about Cindat, please visit www.cindat.com
Union Life Insurance Co. Ltd, with over $13 billion in assets, is one of China’s leading life insurance companies. Union Life develops and owns skilled nursing facilities in six Chinese markets, with investments totaling over $1.3 billion. Its overseas investment activity from mid 2014 until today includes $100 million in U.S. senior housing real estate.
For more information about Union Life, please visit www1.unionlife.com.cn/english/
Welltower Inc. (NYSE:HCN), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people’s wellness and overall health care experience. Welltower™, a real estate investment trust (REIT), owns more than 1,400 properties in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties. More information is available at www.welltower.com.