Health Care REIT and Revera, Inc. (“Revera”) announced that they have entered into a definitive agreement to purchase Regal Lifestyle Communities Inc. (“Regal”) in a 75/25 joint venture (JV) for CAD$12.00 per share in cash. This is a total enterprise value of approximately CAD$766 million, or US$623 million.
Regal is a publicly traded Canadian corporation that operates 23 seniors housing communities that has more than 3,600 units. It has 13 communities in Ontario, seven in Quebec, and one each in British Columbia, Saskatchewan and Newfoundland. 83% of the portfolio’s net operating income is from Toronto, Montreal, Ottawa and Vancouver.
Tom DeRosa, HCN’s Chief Executive Officer, mentioned in a statement “Together with our partner, Revera, we continue to deliver compelling housing and care settings for Canada’s growing senior population.” He said. “The acquisition of Regal is a rare opportunity to add a large, high-quality private pay portfolio concentrated in Canada’s largest metropolitan markets, where there is strong underlying demand. HCN’s unparalleled relationship model continues to drive transparent and consistent new investment growth. We will continue pursuing strategic international investment opportunities through our teams on the ground in Toronto and London.”
HCN and Revera go a long way together. The two companies have formed a joint venture in May 2013, when HCN acquired 47 seniors housing communities from Revera for CAD$1.34 billion. Including the acquisition of Regal, the deal is projected to comprise of gross investments of CAD$2.8 billion. More details about the acquisition will be provided in the following weeks to come.
Thomas G. Wellner, President and Chief Executive Officer of Revera, also mentioned in a statement “Revera is entering an exciting period of expansion in the senior living sector focused on growth and innovation across its private pay portfolio in Canada, the United States and the United Kingdom.” He said. “We are pleased to strengthen our relationship with HCN and to grow our leadership position in Canada through the acquisition of these high-quality retirement communities. We look forward to welcoming the Regal teams to Revera and to working together to continue to create a great experience for seniors in our communities.”
About Health Care REIT
Health Care REIT or HCN is one of the partners of families in health care. The company has formed relationships with leading health care systems and seniors for housing operators in the U.S and abroad. Health Care REIT stock market evolution http://www.marketwatch.com/investing/stock/hcn
About Thomas J. DeRosa
Mr. DeRosa is Chief Executive Officer of HCN. Mr. DeRosa has served as Chief Executive Officer since April 2014. Mr. DeRosa has extensive knowledge of the real estate industry and capital markets from his experience as Vice Chairman and Chief Financial Officer of The Rouse Company and at Deutsche Bank and Alex. Brown & Sons and his leadership of the Company as Chief Executive Officer provides him with intimate knowledge of the Company’s business and operations.
About Revera, Inc.
Revera Inc., is a privately owned Canadian provider of accommodation, care and services for retirees and seniors. It operates long term care and seniors housing retirement residences. Formerly named Retirement Residences Real Estate Investment Trust, it used to be publicly traded on the TSX under the symbol RRR.UN and other various symbols but was taken private in 2007. The company is now the second-largest network of accommodation, care and services for seniors in North America, serving older adults at more than 500 locations in Canada and the United States. It also has holdings in the UK. The company is headquartered in Mississauga, Ontario. There are also corporate offices in Cambridge, Ontario and Meriden, Connecticut (USA)
About Thomas Wellner
Thomas Wellner has extensive global experience in biotech, pharmaceuticals and health care services in public and private businesses. Mr. Wellner joined Revera in 2014. Mr. Wellner holds an Honours Bachelor of Science in Life Sciences from Queen’s University, recently completed his ICD Directors Education Program at the Rotman School of business and has completed executive education through Harvard Business School.
About Regal Lifestyle Communities
Regal Lifestyle Communities’ goal is to provide the highest-quality retirement care in Canada; it is the innovation and guidance of our Leadership Team that makes this possible. Regal Lifestyle Communities employs great people to provide residents with an exceptional retirement experience. All residences are locally-operated by the best staff . Regal Lifestyle Communities’ approach is simple: they emphasize care, comfort, and peace of mind. They provide customers with peace of mind through consistent, comprehensive, and high-quality care services offered in accommodations designed for safety and comfort. Regal Lifestyle Communities stock market evolution http://www.bloomberg.com/quote/RLC:CN