On June 18, Health Care REIT and Revera, Inc. announced plans to acquire Regal Lifestyle Communities, Inc. in a $623 million deal. The two parties already have an existing 75/25 joint venture. Regal Lifestyle Communities is a Toronto-based company that owns and operates 23 senior housing communities with over 3,600 units. The portfolio includes 13 communities in Ontario, seven across Quebec, and one property each in British Columbia, Saskatchewan, and Newfoundland. The portfolio is 85% independent living, 14% assisted living, and 1% memory care. The majority of the portfolio’s net operating income is derived from Toronto, Montreal, Ottawa, and Vancouver.

The Regal properties have significant amenities, which puts them in the mid-upper market range. Minor modifications will be planned to enhance the property. This acquisition is toward Revera’s goal to double its Canadian portfolio by 2020. Revera CEO Thomas Wellner said that “Partnerships allow us to be much more efficient with the use of our own capital. We can have a broader set of communities but our need to put out equity is less. We maintain exposure to the real estate in a balanced way and retain the operating responsibility and operating contract.” When the acquisition closes, the Regal properties will fall under the Revera brand and will be managed by Revera.

The company is focused on growing its private pay business and increasing options that will appeal to a “younger senior” who is looking for an independent living option. “The acquisition of Regal is a rare opportunity to add a large, high-quality private pay portfolio concentrated in Canada’s largest metropolitan markets, where there is a strong underlying demand,” Health Care REIT CEO Tom DeRosa said. This acquisition is the latest deal between Health Care REIT and Revera – the two companies formed a joint venture in May 2013.

New Senior Investment Group Acquires 28 Properties from Holiday Retirement

On June 22, New Senior Investment Group Inc. announced plans to acquire a 28-property portfolio from Holiday Retirement in a $640 million deal. The portfolio includes private-pay independent living communities and boats 3,298 units in 21 states. The portfolio currently has approximately 88% occupancy. When the acquisition closes, New Senior will have 152 properties across 37 states in its portfolio. New Senior will take over the ownership of the portfolio and Holiday Retirement will continue the operations. “We are excited to add 28 independent living properties to our portfolio through this accretive acquisition. This transaction further increases our industry-leading private-pay senior housing NOI exposure to 91% of our portfolio”, New Senior’s CEO Susan Givens said of the acquisition. The Holiday acquisition is predicted to generate an initial cash net operating income (NOI) of 6.4%. With this acquisition, New Senior will expand into five new states- Arkansas, South Dakota, South Carolina, Hawaii, and Indiana.

On the same day the acquisition was announced, New Senior also announced a public offering of 17.5 million shares of common stock. New senior will use a portion of the net proceeds to fund the acquisition.

Contact Cambridge Realty Capital

Cambridge Realty Capital specializes in providing financing and capital for mergers and acquisitions and joint ventures. For any questions regarding finance and capital for your Senior Living initiative, contact Cambridge Realty Capital.

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