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Ventas to buy real estate assets for $1.5Bn

Ventas, an American real-estate investment trust will pay private equity funds managed by Lazard Real Estate Partners $1.5 billion for the real estate assets of Atria Senior Living Group. The deal makes Ventas the largest U.S. owner for senior housing communities. Ventas is to pay $150 million in cash and 25 million shares of its common stock (worth $1.35 billion) for the 118 housing communities, and it takes on $1.6 billion of Atria’s debt.

(Reuters) – U.S. healthcare real-estate investment trust Ventas Inc said it will buy the real estate assets of Atria Senior Living Group for about $1.5 billion, making it the largest U.S. owner of seniors housing communities.

The company said it will pay $150 million cash and 25 million shares of its common stock, valued at $1.35 billion, to acquire 118 senior housing communities from Atria.

Ventas expects the deal to add to its 2012 normalized funds from operations per share.

The deal will generate revenue of about $640 million in 2011.

Atria is owned by private-equity funds managed by Lazard Real Estate Partners.

The assets under the deal are mostly located in wealthy metropolitan enclaves and coastal communities around New York, New England and California, the company said.

Ventas will also assume $1.6 billion of Atria’s debt.

Shares of Ventas closed at $54.75 Thursday on the New York Stock Exchange.
(Reporting by Krishnakali Sengupta in Bangalore; Editing by Aradhana Aravindan)