Press release from Business Wire
Health Care REIT, Inc. Completes Investment with Revera Inc.
Tuesday, May 28, 2013
Health Care REIT, Inc. Completes Investment with Revera Inc.17:32 EDT Tuesday, May 28, 2013
TOLEDO, Ohio (Business Wire) -- Health Care REIT, Inc. (NYSE:HCN) announced today that it has completed the acquisition with Revera Inc. (“Revera”) of 47 high-quality seniors housing and care communities with approximately 5,000 units located in major Canadian metropolitan markets. The transaction was previously announced on May 8, 2013 and closed May 28, 2013. Health Care REIT owns a 75% interest and Revera owns the remaining 25% interest. Revera will manage the communities under an incentive-based management contract. The portfolio is comprised primarily of independent living residences with many offering a continuum of care that includes assisted living and/or memory care. Based on a USD to CAD exchange rate of 1:1, the purchase price is USD $1.35 billion(1). The transaction is expected to generate a first-year unlevered NOI yield of 7.0%, grow in excess of 5.0% over the near-term and grow between 4.0% and 5.0% over the longer-term. The company's share of the purchase price is USD $1.01 billion(1).
For additional information regarding the Revera investment, read the transaction brochure on the company's website at www.hcreit.com.
About Health Care REIT, Inc. Health Care REIT, Inc., an S&P 500 company with headquarters in Toledo, Ohio, is a real estate investment trust that invests across the full spectrum of seniors housing and health care real estate. The company also provides an extensive array of property management and development services. As of March 31, 2013, the company's broadly diversified portfolio consisted of 1,133 properties in 46 states, the United Kingdom, and Canada.
About Revera Inc. Revera is a leading provider of seniors' accommodation, care and services, headquartered in Mississauga, Ontario. The company is owned by Canada's Public Sector Pension Investment Board and is the second largest provider of seniors housing and long-term care in Canada. Revera currently operates 90 seniors housing facilities, 79 long-term care facilities, and 35 sites coordinating the provision of home health care in Canada. Revera also owns and operates 40 seniors housing and skilled nursing facilities in the U.S.
Forward-Looking Statements. This document contains “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. When the company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions, it is making forward looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The company's expected results may not be achieved, and actual results may differ materially from expectations. This may be a result of various factors, including, but not limited to, material differences between actual results and the assumptions, projections and estimates regarding the portfolio's occupancy rates, rental rates, operating expenses or required capital expenditures; the movement of U.S. and Canadian exchange rates; competition within the seniors housing industry; unanticipated difficulties and/or expenditures relating to the transaction and the relationship; Revera's ability to obtain rate increases over time and to realize operating efficiencies; risks related to non-compliance with government regulations and new legislation or regulatory developments; risks related to international operations; the parties' ability to cooperate and reach agreement on major decisions; and other factors affecting the performance of the partnership, including REIT laws and regulations. Additional factors are discussed in the company's Annual Report on Form 10-K and in its other reports filed from time to time with the Securities and Exchange Commission. The company assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ from those projected in any forward-looking statements.
(1) The U.S. dollar amount of the transaction is subject to change based on final accounting of the currency translation.
Health Care REIT, Inc.
Scott Estes, 419-247-2800
Jay Morgan, 419-247-2800