Ventas (NYSE: VTR) has agreed to lease 32 assisted living and dementia care communities to a subsidiary of Senior Care, Inc.
Currently operated by Hearthstone Senior Services, the communities’ operations will simultaneously be acquired by Senior Care and be operated under its “Elmcroft” brand. The communities were acquired by Ventas as part of its acquisition of Nationwide Health Properties (“NHP”) that closed on July 1, 2011.
“Senior Care is a valued tenant of Ventas,” said Ventas President Raymond J. Lewis. “Since 2006, the experienced management team led by Pat Mulloy has increased occupancy in our Senior Care portfolio by 1,200 basis points to over 90 percent. Moreover, Senior Care’s Elmcroft Senior Living operating team has established a reputation for reliability and excellent service with families, licensing authorities and referral sources and has demonstrated a consistent commitment to residents and employees.”
The 32 communities contain 2,189 units, are located in Arizona, New Mexico, Oklahoma, Texas, Alabama, Florida, Tennessee, Georgia, Ohio, and Michigan. Senior Care currently operates healthcare and seniors housing assets in six of these ten states.
Upon closing of the Transaction, Senior Care will be one of the 20 largest seniors housing operators in the United States.
The lease with Senior Care will have an initial term of 15 years with two 5-year renewal options. The Transaction will not change Ventas’s corporate projections for the acquisition of NHP and it expects the transaction to close in the third quarter of 2011.
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