Feb. 15 (Bloomberg) -- Health Care REIT Inc. and Chartwell Seniors Housing Real Estate Investment Trust agreed to buy senior-housing properties in Canada for $925.2 million.
Most of the 42 properties are independent-living communities in Quebec, Ontario, British Columbia and Alberta, Health Care REIT said in a statement today. They are being purchased from five investment funds, the Toledo, Ohio-based company said.
The transaction, expected to be completed in the second quarter, will immediately add to Health Care REIT’s funds from operations, according to the statement. FFO gauges a real estate company’s ability to generate cash.
“This investment takes our successful U.S. investment strategy and applies it to the Canadian market,” George Chapman, Health Care REIT’s chairman and chief executive officer, said in the statement. The company “will gain a meaningful foothold in Canada’s largest and most attractive markets,” he said.
The partners will have equal shares in 39 of the properties and Health Care REIT will wholly own the others, according to the statement. Chartwell, based in Mississauga, Ontario, will manage the communities.
Health Care REIT owned 898 properties in 45 states as of Sept. 30, according to the statement. Chartwell owned, operated and managed 195 senior-housing developments in North America.
To contact the reporter on this story: Brian Louis in Chicago at firstname.lastname@example.org
To contact the editor responsible for this story: Daniel Taub at email@example.com