Welltower (NYSE: WELL) Acquires Amica Senior Lifestyles' Ultra-Luxury Seniors Housing Portfolio

March 03, 2025 03:51 PM AEDT | By Team Kalkine Media

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Welltower (NYSE: WELL) Acquires Amica Senior Lifestyles' Ultra-Luxury Seniors Housing Portfolio — Image source: Shutterstock

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Highlights

Welltower acquires Amica Senior Lifestyles’ portfolio for C$4.6 billion.

Expands into premium Canadian markets with luxury senior housing communities.

Deal includes seven under-construction properties and entitled development parcels.

Welltower (NYSE:WELL), a leading real estate investment trust (REIT) specializing in senior housing and healthcare properties, has made a strategic move by acquiring Amica Senior Lifestyles' ultra-luxury seniors housing portfolio for C$4.6 billion. This acquisition includes 38 luxury senior housing communities and nine entitled development parcels. The deal strengthens Welltower’s footprint in premium Canadian markets, particularly in Toronto, Vancouver, and Victoria, and adds a significant portfolio of high-quality properties to its portfolio.

The acquisition consists of a 31-property portfolio valued at C$3.2 billion, previously owned by Ontario Teachers' Pension Plan, along with seven under-construction properties and entitled development parcels. The properties offer a continuum of care, including independent living, assisted living, and memory care. Notably, the portfolio includes 24 stabilized communities and seven recently opened properties in the lease-up phase, which Welltower is acquiring at a substantial discount to replacement cost.

One of the key aspects of this acquisition is the strategic partnership with Amica Senior Lifestyles, which positions Welltower to capitalize on future growth opportunities within the senior housing sector. The under-construction properties, with an average RevPOR (Revenue per Occupied Room) of over C$12,000, are expected to be completed between 2025 and 2027. Additionally, Welltower will assume C$560 million in CMHC-insured debt at a low 3.6% interest rate.

While the acquisition presents several positive aspects, including a discounted purchase price, strong RevPOR growth, and expansion into supply-constrained markets, it also comes with challenges. The large capital commitment of C$4.6 billion and the extended development timeline for the under-construction properties (2025-2027) could pose potential risks. Moreover, the regulatory approval process could delay the closing of the transaction, expected in Q4 2025.

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