Holiday Retirement Sells Canadian Portfolio to Ventas for $900 Million

Holiday Retirement continues to unload senior living assets to big spending investors, announcing the sale of 29 Canadian communities to Ventas, Inc. (NYSE:VTR) on Monday for approximately $900 million.

The properties, all of which are independent living and total 3,354 units, are located in seven Canadian provinces, with the majority concentrated in Toronto and Alberta. The communities have an average occupancy of 90%, margins of 50% and revenue per occupied room of approximately $2,937 (C$3,200).

Upon closing, the communities will be operated by Louisville, Kentucky-based Atria Senior Living, Ventas said in filings with the U.S. Securities and Exchange Commission related to the deal. Following the transaction, Atria will manage 173 communities for the Chicago-based REIT.

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The acquisition comes following a series of Holiday portfolio acquisitions among several healthcare REITs in the sector, and arrives on the same day as an announcement that Ventas will acquire American Realty Capital Healthcare Trust, Inc. (NASDAQ:HCT) for $2.6 billion.

In December, Newcastle Investment Corp. (NYSE:NCT) closed a $1 billion acquisition of 51 independent living communities from a Holiday affiliate, Fortress Investment Group LLC.

During the same month, National Health Investors (NYSE:NHI) completed its purchase of 25 former Holiday Retirement independent living communities from Holiday Acquisition Holdings for $491 million.

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Atria, along with Sunrise Senior Living, represents 51% of Ventas’s senior housing operating portfolio, with the remaining 49% comprised of triple-net leases. Together, this segment totals 713 assets and constitutes 54% of the REIT’s NOI, according to a May 2014 Ventas presentation at the Sanford C. Bernstein’s 30th Annual Strategic Decisions Conference.

An S&P 500 company, Ventas commands a diverse portfolio of nearly 1,500 assets in 47 states, Canada and the United Kingdom comprising senior housing communities, skilled nursing facilities, medical office buildings, hospitals, among other properties.

The acquisition of Holiday’s communities will expand Ventas’s international presence in Canada from two provinces to seven. The communities constitute Holiday’s entire Canadian portfolio, according to the company’s website.

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Pending customary closing conditions and approvals, Ventas expects to close the transaction with Holiday in the third quarter of 2014.

Ventas did not respond to a request for comment as of press time.

Written by Jason Oliva

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