Health Care REIT to acquire group of senior housing communities

5/8/2013
BLADE STAFF

Health Care REIT Inc. plans to buy a 75 percent stake in a group of Canadian senior housing communities. The deal is worth more than $1 billion.

The 47 properties are wholly owned by Revera Inc., the second-largest operator of senior housing and long-term care facilities in Canada.

Toledo-based Health Care REIT will spend about $697 million in cash and assume about $313 million in debt to complete the acquisition.

The deal has been approved by both companies' boards, and is expected to close by the end of June. Revera will continue to manage the communities, which are located in some of Canada’s largest metropolitan areas, including Toronto, Vancouver, and Calgary.

Health Care REIT said most of the properties are independent living communities, with many offering assisted living care.

The company, which specializes in senior housing and health care real estate, currently owns 1,133 properties in 46 states, the United Kingdom, and Canada.

Also on Wednesday, Health Care REIT announced plans to offer 18 million shares of common stock. Money generated from the stock sale will be used to repay advances under the company's unsecured lines of credit, to repay other outstanding debt, and for general corporate purposes, the company said in a statement.

The company’s shares dropped $1.47 — about 2 percent — to $74.15 a share Wednesday in trading on the New York Stock Exchange.