Welltower Announces Acquisition of Ultra-Luxury Amica Senior Lifestyles Portfolio for C$4.6 Billion and Formation of Long-Term Growth Partnership

Rhea-AI Summary

Welltower (NYSE: WELL) has announced a significant acquisition of Amica Senior Lifestyles' ultra-luxury seniors housing portfolio for C$4.6 billion. The deal encompasses 38 luxury senior housing communities and nine entitled development parcels, including a 31-property portfolio valued at C$3.2 billion, acquired from Ontario Teachers' Pension Plan.

The portfolio features properties in premium locations across Toronto, Vancouver, and Victoria, offering a continuum of care including independent living, assisted living, and memory care. The transaction includes 24 stabilized communities and seven recently opened properties in lease-up phase, acquired at a substantial discount to replacement cost.

Key aspects include:

• Formation of a long-term strategic partnership with Amica Senior Lifestyles
• Acquisition of seven under-construction properties (expected completion 2025-2027)
• Average RevPOR of over C$12,000 for under-construction properties
• Assumption of C$560 million CMHC-insured debt at 3.6% interest rate
• Expected closing in Q4 2025, subject to regulatory approvals

Positive

• Portfolio acquired at substantial discount to replacement cost
• Strong RevPOR growth outperforming Welltower's overall SHO portfolio
• Strategic expansion into premium Canadian markets
• Long resident length of stay (3-4 years)
• Low-cost debt assumption (3.6% interest rate)
• Entitled development parcels in supply-constrained locations

Negative

• Large capital commitment of C$4.6 billion
• Seven properties still in lease-up phase
• Extended development timeline (2025-2027) for under-construction properties
• Regulatory approval requirements could delay closing

Insights

Financial Analyst

Welltower's C$4.6 billion acquisition of Amica's ultra-luxury senior housing portfolio represents a significant expansion into Canada's premium senior living market. The transaction's structure reveals a sophisticated approach to portfolio building:

The deal includes 31 in-place properties (24 stabilized, 7 in lease-up) valued at C$3.2 billion, plus 7 under-construction properties and 9 entitled development parcels. This staged acquisition approach allows Welltower to immediately capture cash flow while securing future growth without development risk.

The portfolio's financial metrics are compelling - particularly the stable assets' RevPOR growth outperforming Welltower's overall SHO portfolio over five years. With untrended stabilized average RevPOR exceeding C$12,000, these properties target an affluent demographic willing to pay premium rates for high-quality care.

By acquiring these assets at what management describes as a "substantial discount to estimated replacement cost," Welltower potentially locks in built-in appreciation. The assumption of C$560 million of CMHC-insured debt at 3.6% interest provides favorable financing in today's rate environment.

The RIDEA 5.0 contract structure with Amica, combined with Welltower taking a minority stake in Amica's management company, creates alignment between property owner and operator - important for maintaining the premium positioning and service levels these properties command.

These communities' continuum-of-care model (independent living through memory care) provides revenue stability with resident length of stay averaging 3-4 years, reducing turnover costs while allowing for regular rate increases as residents require higher levels of care.

Real Estate Investment Specialist

This acquisition positions Welltower as the dominant player in Canada's ultra-luxury senior housing segment, securing irreplaceable assets in supply-constrained, affluent neighborhoods across Toronto, Vancouver, and Victoria. The strategic value extends beyond the physical properties.

The portfolio's location characteristics are exceptional - these aren't just premium senior facilities, but assets positioned within Canada's most expensive real estate markets with formidable barriers to entry. The transaction includes entitled development parcels that required an average of over five years to secure approvals, highlighting the extreme difficulty competitors would face replicating this portfolio.

The deal's structure demonstrates sophistication in risk management. By purchasing the seven under-construction properties only upon receiving certificates of occupancy (2025-2027), Welltower avoids development risks while securing future trophy assets. This allows capital deployment when assets begin generating revenue rather than funding construction.

The partnership with Amica provides operational expertise specific to the ultra-luxury Canadian market, which differs significantly from US models. The longer average stay (3-4 years) compared to many US properties enhances NOI stability and reduces turnover costs.

Welltower's acquisition occurs against a favorable demographic backdrop. Canada's senior population is growing rapidly while new supply remains constrained, particularly in the ultra-luxury segment. The acquired communities focus on higher acuity care needs (including assisted living and memory care), addressing an underserved market segment in a Canadian landscape historically dominated by independent living.

The closing timeline (Q4 2025) and regulatory approval process reflect the transaction's complexity and size relative to the Canadian senior housing market.

TOLEDO, Ohio, March 2, 2025 /PRNewswire/ -- Welltower Inc. (NYSE: WELL) ("Welltower" or the "Company") today announced that it is under contract to acquire a portfolio of 38 ultra-luxury seniors housing communities and nine entitled development parcels, including a 31-property in-place portfolio valued at C$3.2 billion, from Ontario Teachers' Pension Plan for aggregate consideration of C$4.6 billion.  The irreplicable and trophy portfolio is located within highly affluent neighborhoods in Toronto, Vancouver and Victoria. In conjunction with the transaction, Welltower also announced the formation of a long-term strategic partnership with Amica Senior Lifestyles ("Amica"), a preeminent seniors housing owner/operator of category-defining luxury communities with a long-term track record of substantial value creation through superior operational and development acumen.

"We are delighted to announce the acquisition of the Amica portfolio, the highest quality senior housing portfolio in North America," said Shankh Mitra, Welltower's CEO. "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."  Mr. Mitra added, "We are also excited to announce the establishment of a long-term partnership with the Amica management team. Amica Senior Lifestyles Co-founder, Robert Ezer, and CEO, Jens Cermak, share our vision on delivering a killer value proposition for residents through the offering of premium hospitality and care and providing a dynamic environment for site level employees to grow and thrive."

The transaction includes 31 in-place properties comprised of 24 stabilized communities and seven recently opened properties still in lease up. The in-place properties are being acquired at a substantial discount to estimated replacement cost. The stable Amica assets have exhibited significant pricing power with RevPOR growth even outperforming Welltower's overall SHO portfolio over the past five years. Welltower and Amica have paved the path for a significant future expansion of Amica's ultra-luxury, higher acuity product within their target Toronto, Vancouver, and Victoria neighborhoods through a long-term strategic partnership and Amica's continued management of the properties under a highly aligned RIDEA 5.0 contract.

In addition to the in-place portfolio, Welltower plans to acquire seven properties currently under construction that have been meticulously planned and curated throughout development timelines that have stretched nearly a decade. The under-construction properties will be acquired upon the achievement of certificates of occupancy, which is expected to occur in stages between 2025 and 2027. This structure allows Welltower to eliminate development risk while enabling the Company to own trophy assets with untrended stabilized average RevPOR of over C$12,000. The nine development parcels Welltower plans to acquire are located in highly affluent and supply constrained neighborhoods and have been entitled through elongated and onerous processes that have spanned over five years on average, providing Welltower with significant future optionality.

The Amica communities provide a continuum of care including independent living, assisted living, and memory care, allowing residents to age in place and helping to drive an average resident length of stay of 3-4 years. Amica has an unparalleled track record in managing and developing luxury seniors housing communities, enabling it to successfully target highly affluent neighborhoods while serving an unmet need of a rapidly aging population through its higher acuity offering given the Canadian senior housing industry's greater focus on independent living. As part of the transaction, Welltower will acquire a minority interest in Amica's highly regarded management company with the Amica management team owning the majority interest, driving further alignment.

"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. We also believe that we will be key beneficiaries of Welltower's industry-leading data science capabilities which will help scale our platform," said Jens Cermak, Amica's CEO. "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."

At closing of the in-place portfolio and development parcels, which is expected in the fourth quarter of 2025, subject to customary regulatory approvals, Welltower will assume C$560 million of CMHC-insured, debt with an average interest rate of 3.6% and a four-year weighted average maturity.

About Welltower

Welltower Inc. (NYSE: WELL), a real estate investment trust ("REIT") and S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. Welltower invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.  

Forward-Looking Statements

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "will," "expect" or similar expressions that do not relate solely to historical matters, Welltower is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower's actual results to differ materially from Welltower's expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to: the possibility that the anticipated benefits of the transaction are not realized when and as expected or at all, including as a result of the impact of, or issues arising from, the integration of the acquired properties into Welltower's operation; Welltower's ability to consummate the long-term strategic partnership with Amica on currently anticipated terms, or within currently anticipated timeframes, and the expected performance of the strategic partnership. Welltower undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.

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SOURCE Welltower Inc.

FAQ

What is the total value of Welltower's Amica portfolio acquisition in 2025?

Welltower is acquiring Amica's portfolio for C$4.6 billion, including 38 senior housing communities and nine development parcels.

How many properties are included in Welltower's (WELL) Amica acquisition?

The acquisition includes 31 in-place properties (24 stabilized, 7 in lease-up), 7 under-construction properties, and 9 development parcels.

What is the expected RevPOR for Welltower's new Amica properties under construction?

The under-construction properties are expected to achieve untrended stabilized average RevPOR of over C$12,000.

When will Welltower (WELL) close the Amica portfolio acquisition?

The acquisition is expected to close in the fourth quarter of 2025, subject to regulatory approvals.

What debt is Welltower assuming in the Amica acquisition?

Welltower will assume C$560 million of CMHC-insured debt with a 3.6% average interest rate and four-year weighted average maturity.