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Welltower and Invesco form $850 mln medical office JV

Welltower Inc and Invesco Real Estate form an $850 million joint venture partnership comprising a portfolio of 35 medical office buildings. The portfolio was previously wholly owned by Welltower.

PRESS RELEASE

TOLEDO, Ohio, Nov. 11, 2019 /PRNewswire/ — Welltower Inc. (NYSE: WELL) and Invesco Real Estate (“Invesco”), a global real estate investment manager, today announced an $850 million joint venture partnership comprising a portfolio of 35 medical office buildings spanning 2.6 million square feet. The portfolio was previously wholly owned by Welltower. The properties are 100% affiliated with health systems and have a weighted average lease term of five years. With an average age of 19 years, these properties have experienced strong second generation leasing. Through this partnership, Welltower will retain a 15% economic interest in the portfolio.

“We are excited to announce this new partnership with Invesco, one of the world’s preeminent institutional real estate investors,” stated Shankh Mitra, Welltower’s Executive Vice President and Chief Investment Officer. “We are constantly striving to optimize both sides of our balance sheet by accessing both public and private capital in all market cycles. Welltower’s relationship driven investment approach contributes directly to the strength of our platform, and we think this relationship with Invesco will create significant value for our shareholders.”

“We are very pleased to partner with Welltower through this investment in their best-in-class medical office portfolio,” commented Greg Kraus, Managing Director and Head of Acquisitions at Invesco. “We share Welltower’s positive outlook on the health care space, and look forward to expanding this relationship and our exposure in this growing sector. It is important to partner with best-in-class owner operators in the medical office sector and Invesco looks forward to collaborating with Welltower, whose expertise in the space via its health care and real estate platform will help deliver significant value to our clients.”