International real estate firm Hines and health care investment company Sentio Investments on Wednesday announced the formation of a new partnership aimed at creating an investment portfolio of senior housing and additional health care real estate.
Houston-based Hines has $111 billion of assets under management. Orlando, Florida-based Sentio Investments, meanwhile, has more than $5 billion in experience operating, acquiring, and developing health care real estate across the U.S. over the last 20 years.
The new partnership will focus primarily on acquiring health care real estate assets, as opposed to developing them, Sherri Schugart, CEO of the Core Fund, REIT & BDC Group of Hines, told Senior Housing News.
“We are targeting health care real estate with income and value creation opportunities in markets across the U.S.,” Schugart explained. “The investment strategy may include all health care asset classes.”
Hines is particularly excited about the senior housing opportunity.
“We feel the macroeconomic and demographic trends provide a compelling opportunity to invest in health care assets,” Schugart said in a press release. “We are excited to join forces with one of the proven leaders in the senior living and health care sector and look forward to partnering with and leveraging the expertise of the Sentio team for the benefit of our investors.”
Hines expects to begin raising capital and investing later this year, she added.
The partnership is not the first time Hines or Sentio has been active in the senior housing space.
In late 2017, real estate investment trust (REIT) Welltower Inc. (NYSE: WELL), in partnership with Hines, closed with a major institutional investor on a limited partnership interest for the development site of a to-be-built 15-story assisted living and memory care community in Manhattan, New York, called The Welltower. The community will be operated by McLean, Virginia-based Sunrise Senior Living.
Meanwhile, afiliates of real estate private equity investor Kayne Anderson Real Estate Advisors (KAREA) acquired Sentio’s public non-traded REIT—Sentio Healthcare Properties—which owned senior housing properties, for $825 million in cash in 2017.
Written by Mary Kate Nelson