Welltower Expands Relationship with Discovery Senior Living through Off-Market Acquisitions and Exclusive $1 Billion Development Agreement
TOLEDO, Ohio, July 31, 2019 /PRNewswire/ -- Welltower Inc. (NYSE: WELL) today announced that it has expanded its relationship with Discovery Senior Living through an off-market acquisition of three infill seniors housing campuses. Located in the Dallas-Fort Worth and San Antonio metropolitan statistical areas, the communities offer the full continuum of care in large, high-end residential settings. The portfolio, recently developed by South Bay, a well-respected developer, was acquired for $216 million ($280,000 per unit) through a newly formed joint venture between Discovery Senior Living and Welltower. The last phase of the Alliance Town Center development in Dallas-Fort Worth will open in the fourth quarter of 2019. Upon completion, the total cost of the portfolio will be $237 million ($273,000 per unit). In-place occupancy throughout the recently built portfolio (excluding the last phase of the Alliance Town Center) was 72% upon acquisition, with acceleration in lease-up anticipated. Units are equipped with high-end condo style finishes and offer access to a variety of lifestyle options including multiple dining areas, swimming pools, outdoor patios, along with fully equipped fitness centers and banquet rooms.
As part of this transaction, Discovery agreed to manage the acquisition portfolio and its existing portfolio with Welltower, which Welltower acquired in 2016, under Welltower's next generation management contract. Further, as part of the transaction, Welltower signed a $1 billion exclusive development agreement with Discovery, under which Welltower and Discovery are currently reviewing two new projects. In addition, Welltower is under contract to fund three newly opened assets located within Discovery's core footprint in Florida for $92.7 million ($255,000 per unit). These three buildings achieved certificates of occupancy in the second quarter of 2019.
"We are excited by the opportunity to expand a key operator relationship," said Welltower's Chief Investment Officer Shankh Mitra. "The communities have superior locations in their respective markets, such as Southlake in Dallas-Fort Worth. They are high end and purpose built and offer the full continuum of care." Mr. Mitra continued, "All of these assets, including those that are under contract, are steel and concrete construction and represent a significant discount to Discovery transactions we have seen in the marketplace recently. We are delighted to partner with Discovery, who is a best-in-class operator of large seniors housing campuses throughout the Southeast, on this transaction and into the future."
"Discovery Senior Living is extremely excited to continue to expand our strategic relationship with Welltower," said Richard Hutchinson, Discovery Senior Living's Chief Executive Officer. "The most recent joint venture acquisitions as well as our mutual multi-year commitment to co-develop an innovative portfolio of senior living communities will keep both companies at the forefront of providing differentiated resident centric experiences that we believe current and future customers of senior living will demand."
About Welltower
Welltower Inc. (NYSE:WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower™, a real estate investment trust (REIT), owns interests in properties concentrated in major, high growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing, post-acute communities and outpatient medical properties. For more information, visit www.welltower.com.
About Discover Senior Living
Discovery Senior Living, a family of companies which includes: Discovery Management Group, Discovery Development Group, Discovery Realty Group, Discovery Marketing Group and Discovery At Home, a Medicare-certified home healthcare company. For more than 25 years, the award-winning management group has been developing, building, marketing and operating upscale, luxury senior-living communities across the United States. With a flourishing portfolio of more than 8,500 existing and under development homes for seniors, Discovery Senior Living has become a recognized industry leader in creating world-class resort-style communities.
Forward-Looking Statements
This press release may contain "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 that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the Company's actual results to differ materially from the Company's expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to, those factors discussed in the Company's reports filed from time to time with the SEC. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.
SOURCE Welltower Inc.
Share this article