Cindat and Union Life to Invest in a Welltower U.S. Health Care Real Estate Portfolio
TOLEDO, OHIO & BEIJING--(BUSINESS WIRE)--Welltower Inc. (NYSE:HCN), Cindat Capital Management Limited ("Cindat") and Union Life Insurance Co. Ltd ("Union Life") announced today that they have entered into a definitive agreement to form a joint venture to invest in a Welltower portfolio of seniors housing and long-term/post-acute care real estate assets. The US $930M transaction represents Cindat's first U.S. health care real estate investment.
The portfolio is comprised of 11 seniors housing properties master leased to Brookdale Senior Living (NYSE:BKD) and 28 long-term/post-acute care facilities master leased to Genesis Healthcare, Inc. (NYSE:GEN). Cindat and Union Life will own a 75% interest, with Welltower retaining a 25% interest.
"With aging demographics and U.S. healthcare trends driving the need for innovative health care infrastructure, we believe the sector represents an attractive long-term investment opportunity," said Greg Peng, CEO at Cindat Capital Management, representing Cindat and Union Life. "We are pleased to announce this partnership with Welltower, the leader in health care real estate. We have a significant appetite for investing in the sector and we look forward to a mutually beneficial relationship with Welltower to capitalize on this unique opportunity."
"We're excited to welcome Cindat and Union Life to our global group of capital partners. The group provides Welltower with a strategic and alternative capital source which will allow us to continue to drive growth and unlock value for our shareholders while positioning our portfolio for opportunities at the forefront of health care and aging trends," said Tom DeRosa, CEO of Welltower.
Brookdale provides services including independent living and assisted living options for the elderly, and Genesis provides skilled nursing for people with chronic conditions and post-acute care for patients recovering from illnesses and medical procedures. Brookdale and Genesis will continue to be the day-to-day operators of their respective properties and provide continuity for residents and staff.
The transaction is expected to close by year end and is subject to customary closing conditions.
Founded in 2013, Cindat is a private equity investment platform that primarily invests in global real estate assets on behalf of its institutional investors. Cindat invests across the capital stack where it identifies relative value, including investments in direct real estate lending, securitized debt, preferred equity and common equity in the key markets of the world. As of June 30, 2019, Cindat manages $2.5 billion of AUM representing $8.6 billion of asset value across 22 distinct portfolio investments located in the United States, the UK, and Asia-Pacific.