Welltower & Brookdale enter into broad relationship restructuring
TOLEDO: Welltower Inc. (NYSE: WELL) today announced a comprehensive restructuring transaction with Brookdale Senior Living Inc. which will result in: a significant reduction in Welltower’s Brookdale concentration, an increase in lease coverage of the remaining triple-net assets leased to Brookdale by Welltower, an opportunity to form a new RIDEA joint venture with Pegasus Senior Living (“Pegasus”), which is founded and managed by industry veterans Steven Vick and Chris Hollister and an opportunity to expand Welltower’s existing relationship with Cogir Management Corporation, a best-in-class, innovative operating partner.
Specifically, the restructuring of the Brookdale portfolio includes the following:
- A total of 63 assets to be transitioned as part of this restructuring:
- 37 properties will be managed by Pegasus, a newly formed management group led by industry veterans Steven Vick and Chris Hollister, the senior housing industry’s most well-respected turnaround specialists with an unmatched track record.
- 12 properties will be managed by Cogir, a leading and innovative operator headquartered in Canada led by Mathieu Duguay. Cogir will invest $68.2 million for a 15% joint venture interest in the properties at a 5.75% cap rate
- 11 properties will be allocated amongst 6 existing Welltower operators with a combination of proven specific individual market, acuity and operating model expertise.
- The remaining 3 non-core properties in tertiary markets will be sold.
