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Welltower, Inc. WELL recently announced that it is under contract to acquire the Canada-based senior housing portfolio of Amica Senior Lifestyles from Ontario Teachers' Pension Plan for an aggregate consideration of C$4.6 billion. The deal, subject to customary regulatory approvals, is expected to close in the fourth quarter of 2025.
Located within highly affluent neighborhoods in Toronto, Vancouver and Victoria, the portfolio consists of 38 ultra-luxury seniors housing communities and nine entitled development parcels, which include a 31-property in-place portfolio valued at C$3.2 billion. This Toledo, OH-based real estate investment trust (REIT), with the transaction, is slated to gain a portfolio of 31 in-place properties, which includes 24 stabilized communities and seven recently opened properties still in lease up.
Welltower intends to purchase seven properties that are currently under construction and that have been planned and curated throughout development schedules stretching nearly a decade. After obtaining certificates of occupancy, which should happen in stages between 2025 and 2027, the under-construction properties will be purchased.
As part of the deal, Welltower also announced the formation of a long-term strategic partnership with Amica. WELL will acquire a minority interest in Amica’s management company, with the Amica management team holding on to a majority ownership stake.
Welltower and Amica have enabled the path for a significant future expansion of the latter's ultra-luxury, high-acuity offerings in their targeted neighborhoods of Toronto, Vancouver and Victoria. This collaboration is further strengthened by Amica's continued management of the properties under a highly aligned RIDEA 5.0 contract.
At closing of the in-place portfolio and development parcels, Welltower will assume $560 million of Canada Mortgage and Housing Corporation insured debt, with an average interest rate of 3.6% and a four-year weighted average maturity.
About Amica
Amica Senior Lifestyles is a preeminent seniors housing owner and operator of category-defining luxury communities. The Amica communities provide a continuum of care, including independent living, assisted living and memory care. It has an unparalleled track record of substantial value creation through exceptional operational and development acumen.
WELL’s Management Commentary
Per Shankh Mitra, CEO of Welltower, "These communities will join the top echelons of the Welltower portfolio, reflected by their location within the most desirable neighborhoods in all of Canada and ultra-luxe amenities and finishes. Against a backdrop of rapidly growing demand and limited new supply, we expect the portfolio to drive outsized revenue and cash flow growth in the coming years."