BY Richard Summerfield
Real estate income trust Welltower Inc has agreed to acquire Amica Senior Lifestyles and certain of its assets and affiliates from Ontario Teachers’ Pension Plan in a deal worth C$4.6bn ($3.2bn).
Under the terms of the deal, which is expected to close in Q4 2025, Welltower will also assume $560m of debt insured by the Canada Mortgage and Housing Corp.
The transaction will see Welltower fold Amica’s 31 income-producing properties, seven communities under construction and nine entitled development parcels located in Ontario and British Columbia into its portfolio. According to Welltower, the income-producing properties are valued at $3.2bn, while the seven sites under construction are said to be worth $1.25bn and the nine development parcels $150m. The properties under construction are scheduled to be acquired between 2025 and 2027. Welltower says the sites are in “highly affluent and supply-constrained neighbourhoods”.
Ontario Teachers’ first invested in Amica in 2010 and took the company private in a deal with management in 2015. As part of the transaction, Welltower will also acquire a minority interest in Amica’s management company with the Amica management team owning the majority interest.
“We are delighted to announce the acquisition of the Amica portfolio, the highest quality senior housing portfolio in North America,” said Shankh Mitra, chief executive 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.”
“We are thrilled to announce our long-term partnership with Welltower, which shares our passion for providing the highest quality care and services to the seniors population,” said Jens Cermak, chief executive of Amica. “We also believe that we will be key beneficiaries of Welltower’s industry-leading data science capabilities which will help scale our platform. Our premium communities appeal to an affluent and sophisticated population across Canada where seniors are empowered to live with freedom, optimism and peace of mind. Our portfolio has witnessed exceptional growth in recent years, and we strongly believe that this momentum can be sustained well into the future.”
“We have been delighted to partner with and support Amica on their journey to empower seniors as they age,” said Terry Woodward, senior managing director, private capital, at Ontario Teachers. “For more than a decade, we have supported the Company’s management team as they have grown the platform. We are excited to watch the Company reach new heights in the future and wish Amica, the management team, and Welltower continued success in their next stage of growth.”
News: Welltower to acquire Amica Senior Lifestyles portfolio for $3.2 billion