Chicago-based Ventas will acquire a $1.8 billion portfolio of 31 independent living communities, plus four in progress, in the Quebec market by investing through an 85% / 15% equity partnership with Le Groupe Maurice, the real estate investment trust announced Monday.
As part of a pipeline agreement with LGM, Ventas also will have exclusive rights to fund and own all of the company’s additional developments.
“We are delighted to announce this accretive investment with Le Groupe Maurice to obtain a strong portfolio with built-in growth potential from existing and new developments in high-quality, attractive urban markets,” Ventas Chairman and CEO Debra A. Cafaro said. “This transaction demonstrates the Ventas team’s commitment to our pivot to growth as we execute on accelerating external growth opportunities.”
During the REIT’s fourth-quarter and full-year 2018 earnings call in February, Cafaro had said that 2019 would be “a pivot year in our transition back to growth” for Ventas.
“While the specific timing of our return to growth following 2019 is difficult to predict, the building blocks are clear: Deliver organic portfolio growth when senior housing operating conditions improve as other business lines continue to grow, capture the benefits of our research and innovation business and development pipeline, utilize our financial strength and flexibility, and reignite our long-standing history of completing successful accretive acquisitions,” she said at the time.
LGM founder and President Luc Maurice, said in a statement: “We have built a leading seniors housing business over 20 years with very strong brand awareness and market share across Quebec through a commitment to quality and an energetic, independent lifestyle for our residents. Le Groupe Maurice’s team and employees are excited about this partnership with Ventas, and we look forward to expanding the business and capitalizing on the significant opportunities we see in the growing and attractive Canadian senior housing market.”