Chicago-based REIT Ventas Inc., in a partnership with Le Groupe Maurice, has entered into an agreement to purchase a Canadian senior housing portfolio worth a total of $1.8 billion. The 85/15 percent equity partnership will entail Ventas acquiring 85 percent of the portfolio while LGM will retain 15 percent and continue to manage the properties.
All of the Class A properties are located in the province of Quebec. As part of the agreement, Ventas will have exclusive rights to fund and own all additional developments under a pipeline agreement with LGM.
Totaling 7,885 units across 28 properties, the communities have a 97 percent occupancy rate and are an average of eight years old. In addition to the 31 senior housing communities, the deal also included four properties currently under construction in Montreal that contain about 1,400 units. Those communities are expected to open in late 2020 and 2021.
The Canadian senior population is expected to nearly double by the year 2028, according to Ventas. A recent Marcus & Millichap report projected that the U.S. senior housing population will grow by 5 million people over the next five years, equating to a 21 percent increase in the number of prospective senior housing residents. Just this week, National Health Investors purchased a U.S. senior housing portfolio for $128 million, in a joint venture with Discovery Senior Living.