Transaction allows Benchmark to invest new capital into revitalizing selected communities and further improve resident experience
TOLEDO, Ohio — Welltower Inc. (NYSE: WELL) and Benchmark Senior Living today announced that Benchmark has recapitalized the Benchmark Senior Living portfolio, previously owned in partnership with Welltower, with private institutional capital for a gross sale price of $1.8 billion. As part of the recapitalization, Welltower has fully exited the portfolio and has the potential to receive an additional $50 million in earnout proceeds, subject to certain future hurdles. The recapitalization closed in early July.
The 4,137-unit seniors housing portfolio consists of 48 assisted living properties located in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, and had $24 million of secured debt that was extinguished at closing. As part of the recapitalization, Benchmark will invest significant capital into the assets to further enhance the resident experience. Benchmark will continue to manage the portfolio under a new management agreement with the new capital partner.
“The recapitalization of our Benchmark portfolio speaks to the strong institutional demand by high quality buyers for seniors housing assets,” said Shankh Mitra, Welltower’s Chief Investment Officer. “We are very pleased with this recap of the Benchmark portfolio that will drive significant capital investment into the assets. We have done business together for many years, and as a future participant in the upside of the portfolio, we wish the venture tremendous success.”
“We are proud of and grateful for our eight-year relationship with Welltower and are extremely pleased with this transaction,” said Tom Grape, Benchmark’s founder, Chairman and CEO. “It allows us to invest in capital expenditures to continue to provide truly life changing experiences for residents through genuine and purposeful human connection. Benchmark’s ongoing goal is to deliver the highest quality experiences to our residents, families and associates, who have depended on our solid financial stewardship and culture of compassionate care for over 22 years.”
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.
Based in Waltham, Mass., Benchmark is a leading provider of senior housing in the Northeast with 6,400 associates, 58 current communities, four new communities underway and $3 billion in company value. Founded in 1997 by Tom Grape, Benchmark offers independent living, assisted living, Alzheimer’s care and continuing-care retirement communities in eight states. The Great Place to Work Institute certified Benchmark in 2019 for the second consecutive year. Additionally, the company was selected by FORTUNE magazine for its inaugural 2018 “Best Workplaces for Aging Services” list, ranking third among companies with more than 40 communities. Benchmark is one of only six companies named to The Boston Globe’s “Top Places to Work” list each of the 11 years it has been published. Click here for more information.
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SOURCE Welltower Inc.