Eleven Brookdale Senior Living communities currently leased from Welltower are part of a $930 million joint venture agreement announced Wednesday via which Cindat Capital Management Limited will make its first investment in U.S. healthcare real estate.
“Those 11 assets are being contributed at a $45 million gain above our original purchase price for the properties,” Scott Brinker, Welltower’s executive vice president and chief investment officer, said Wednesday during the company’s third-quarter earnings call.
The Brookdale communities represent approximately 30% of the deal, which also includes 28 long-term/post-acute care facilities master leased to Genesis Healthcare. Cindat and Union Life Insurance Co. Ltd. will own a 75% interest in the joint venture, and Welltower will retain a 25% interest.
Cindat is a China-based institutional investor specializing in overseas real estate, and Union Life is one of the leading insurance companies in China, Brinker said.
“Cindat’s vision and significant interest in the U.S. healthcare real estate sector exemplifies the natural fit between long-term investors seeking returns driven by unmatched demographic trends,” Welltower CEO Tom DeRosa said Wednesday during the earnings call.
“With aging demographics and U.S. healthcare trends driving the need for innovative healthcare infrastructure, we believe the sector represents an attractive long-term investment opportunity,” Greg Peng, CEO at Cindat Capital Management, said in a statement made on behalf of Cindat and Union Life.