Welltower Acquires NorthStar Healthcare in $900M Deal
Welltower has agreed to acquire NorthStar Healthcare Income for an enterprise value of roughly $900 million in a move that will expand the company's healthcare portfolio.
The deal, while not closed yet, will give Welltower control of NorthStar's 40 senior housing communities. To boost the performance of the portfolio over the past few years, Kendall Young, CEO and president of NorthStar Healthcare said that the Memphis, Tennessee-based firm has been looking at disposition opportunities.
According to Welltower, it currently manages 430 medical assets, spanning 26 million square feet, across the country.
"Subject to satisfaction of closing conditions and closing under the merger agreement, Welltower anticipates will be allocated to an entity affiliated with its recently announced funds management business," Nikhil Chaudhri, co-president and chief investment officer of Welltower, said in a statement.
"We expect that this portfolio will serve to further enhance our regional densification strategy through our existing geographic footprint and network of exceptional seniors housing operators."
The merger is expected to close in the first half of this year pending a vote at a special meeting at an unknown date between NorthStar shareholders, according to the two parties. Also, the terms allow NorthStar to weigh on other buyout proposals during a 40-day go shop period starting on the date of the merger deal.
In a recent report Cushman & Wakefield noted that seniors are expected to drive healthcare spending by 31 percent to nearly $2 trillion by 2030.
Source: GlobeSt/ALM