OTPP Sells Amica to Welltower for C$4.6 Billion
U.S. company Welltower Inc. has signed a deal to buy Amica Senior Lifestyles from Ontario Teachers’ Pension Plan for $4.6 billion.
The deal includes 31 seniors residences and seven under construction.
As part of the transaction, Welltower will also acquire a minority interest in Amica’s management company with the Amica management team owning the majority interest.
Welltower CEO Shankh Mitra says the deal comes against a backdrop of rapidly growing demand and limited new supply for seniors residences.
Ontario Teachers’ first invested in Amica in 2010 and took the company private in a deal with management in 2015.
The deal with Welltower is expected to close in the fourth quarter of 2025, subject to customary regulatory approvals.
This report by The Canadian Press was first published March 3, 2025.
Reuters also reports Welltower to buy Amica portfolio from Ontario Teachers’ Pension Plan for $4.6-billion:
Real estate income trust Welltower WELL-N is set to expand its operations in Canada by acquiring luxury senior homes operator Amica Senior Lifestyles’ portfolio from the Ontario Teachers’ Pension Plan for $4.6-billion, Welltower said on Sunday.
As part of the deal, Welltower said it will assume $560-million in Canada Mortgage and Housing Corp insured debt.
The portfolio from Amica consists of 38 luxury seniors-housing communities, nine entitled development parcels, including a 31-property in-place portfolio, Welltower said.
The REIT will also form a long-term partnership with Amica’s management by acquiring minority interest in the private-pay retirement residences firm’s management company, it said in a statement.
Welltower said that apart from the in-place portfolio, it also will acquire seven properties currently under construction that are expected to be completed between 2025 and 2027.
In 2015, Ontario Teachers – one of the world’s largest pension plans – through its BayBridge unit took Amica Mature Lifestyles private for $578-million and merged it with its seniors-housing subsidiary to create Amica Senior Lifestyles.
Established in 1996, Amica owns and operates over 30 residences in British Columbia and Ontario, according to its website.
The deal would further expand Ohio-based Welltower’s operations in Canada. It already has a presence in the United States, Canada and the UK, where it owns housing, outpatient medical centers and healthcare properties with a focus on older adults and assisted living.
Welltower said it expects the deal to close in the fourth quarter of 2025.
On Sunday, OTPP issued a press release stating it reached an agreement to sell Amica Senior Lifestyles:
Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) has reached an agreement to sell Amica Senior Lifestyles (“Amica” or the “Company”) and certain of its assets and affiliates to Welltower Inc., a real estate investment trust that invests in leading seniors housing, post-acute, and health system properties and operators across the United States, Canada and the United Kingdom, for C$4.6 billion.
Amica is one of the leading providers of premium senior living residences in Canada. It is uniquely structured as an integrated owner, operator and developer of private independent living, assisted living and memory care facilities for seniors in Ontario and British Columbia. Ontario Teachers’ made its initial platform investment in Amica in 2010 alongside co-founders Douglas MacLatchy and Robert Ezer. The Company has since grown to a portfolio of 31 income producing properties and 7 properties under construction that are located in some of Canada's most affluent neighbourhoods.
Over the past 15 years, Ontario Teachers’ has partnered with management to drive significant growth through multiple value creation levers, which have led the Company to its track record of industry-leading performance. In 2015, Ontario Teachers’ and management completed a transformational take-private acquisition, adding 25 properties to the portfolio. Amica has defined a new standard for senior living in Canada by combining premium hospitality and amenities with expert care and support to deliver a personalized senior living experience. Ontario Teachers’ has supported management in maintaining an enhanced focus on residence safety and satisfaction, with residents benefiting from 24/7 support, on-site nurses, emergency monitoring, and attentive wellness staff. Additionally, the Company has established a best-in-class development program, enabled by strategic site selection, strong in-house expertise, and joint-venture partnerships to build new residences in attractive markets.
Robert Ezer, Co-Founder and Chief Investment Officer at Amica said:
“For the last 15 years, Ontario Teachers’ has acted as an extension of our internal team. We are grateful for how they’ve supported our strategic ambitions, and we are now looking forward to working and partnering with the team at Welltower to help carry this growth momentum forward.”
Douglas MacLatchy, Co-Founder and Vice Chairman at Amica said:
"Amica has always been dedicated to providing exceptional senior living experiences. Our commitment to quality and innovation has allowed us to create a welcoming and supportive environment for our residents. We take pride in the positive impact we have made in their lives and the communities we serve."
Terry Woodward, Senior Managing Director, Private Capital, at Ontario Teachers’ said:
“We have been delighted to partner with and support Amica on their journey to empower seniors as they age. For more than a decade, we have supported the Company’s management team as they have grown the platform. We are excited to watch the Company reach new heights in the future and wish Amica, the management team, and Welltower continued success in their next stage of growth.”
Goldman Sachs & Co. LLC served as lead sell-side financial advisor and CIBC Capital Markets and Newmark Group, Inc. also served as sell-side financial advisors. Stikeman Elliott LLP and Torys LLP served as sell-side legal advisors.
About Ontario Teachers’ Pension Plan
Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $255.8 billion as at June 30, 2024. We invest in more than 50 countries in a broad array of assets including public and private equities, fixed income, credit, commodities, natural resources, infrastructure, real estate and venture growth to deliver retirement income for 340,000 working members and pensioners.
Our more than 450 investment professionals operate in key financial centres around the world and bring deep expertise in a broad range of sectors and industries. We are a fully funded defined benefit pension plan and have earned an annual total-fund net return of 9.3% since the plan's founding in 1990. At Ontario Teachers', we don't just invest to make a return, we invest to shape a better future for the teachers we serve, the businesses we back, and the world we live in. For more information, visit otpp.com and follow us on LinkedIn.
Last April, I discussed how OTPP was looking to sell Aspenleaf and Amica. You can read that comment here.
At the time, reports were they were weighing a C$5 billion deal and I wrote this:
[...] let me be clear, I do not think Teachers' is looking to sell Amica because of the pandemic which is now largely behind us.
Instead, I think this is a real estate diversification move as last year, OTPP bifurcated Cadillac Fairview, its real estate subsidiary and internalized global real estate investments.
Remember, OTPP is still very overweight Canadian real estate and it has explicitly stated they are looking to diversify outside Canada but are not willing to sell prized assets at a deep discount (nor should they).
CEO Jo Taylor made that very clear to me.
Anyway, whenever you read a pension fund is thinking of selling an asset, it's typically because someone internally leaked it out to get the word out.
Why is OTPP selling assets? It's a portfolio allocation move (in real estate) or it could be shoring up liquidity to pounce on other investments as opportunities arise.
Amica Senior Lifestyles was a phenomenal asset for OTPP, they worked with management to grow that platform well and are now realizing close to the C$5 billion they were looking for.
That's a lot of money that OTPP's team will allocate to investment opportunities as they arise and there will be plenty of dislocations in these markets to capitalize on opportunities.
For its part, Welltower (WELL) is acquiring a great asset, one it can support as demand for luxury senior living grows in Canada:
Welltower 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 healthcare experience. Welltower owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.
Anyway, what this deal shows is of you have great assets on your books and you've added value in them over the years, chances are you will always find a strategic buyer willing to pay fair value.
Below, discover the Amica difference and why the demand for quality seniors living is growing.
Aslo, earlier today, Prime Minister Justin Trudeau, speaking from Parliament Hill said Canada will immediately start imposing tariffs on $30 billion worth of US goods. Trudeau said tariffs will be imposed on the remaining $125 billion of American products in 21 days as a response to US tariffs that went into effect on Canada Tuesday.
Lastly, Marko Papic, BCA Research chief strategist, joins 'Closing Bell Overtime' to talk the impact of changing foreign policy on markets and how global trade is pivoting out of American assets.
Update: After reading this comment, an expert sent me this:
1. Amica was part of OTPP‘s Long-Term Equities sleeve, which is part of the Equities department (not Real Estate). LTE has a lower benchmark than traditional private equity to reflect the lower risk nature of the sorts of investments it does.
2. LTE was created in late 2009/early 2010 to allow the plan to invest in opportunities that risked “falling between the cracks” that can exist between the traditional definitions of Private equity, Infrastructure, and Real Estate.
3. Lee Sienna incubated this program and was responsible for the Amica investment and many other “franchise transactions” at OTPP, including Camelot Group (the UK national lottery). He deserves the vast majority of the credit here for what ended up being an excellent investment.
4. Success has many fathers (and failure is an orphan) so I want to make sure that Lee gets a proper shout out here. He deserves it. His track record at OTPP was absolutely outstanding.
More details are available here.LONDON / New York, March 5th, 2025 – Quantexa, a global leader in Decision Intelligence (“DI”) solutions for the public and private sectors, announced today that it has completed a USD 175 million Series F investment round, led by Teachers’ Venture Growth (“TVG”).
The latest round values the British tech company at USD 2.6 billion and this milestone is fuelling Quantexa’s progress against its mission to help enterprises and government agencies across multiple markets stay ahead in the race for AI-driven DI.
The round was led by TVG, which is part of the CAD 255 billion international investor Ontario Teachers’ Pension Plan, with existing investors participating, including British Patient Capital. *As part of this funding, Ara Yeromian, Managing Director at TVG, will join Quantexa’s board, which includes representation from existing investors (Warburg Pincus, Dawn Capital, Evolution Equity Partners, AlbionVC, and HSBC).
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