HCN, Revera JV To Acquire Regal Lifestyle For C$12 Per Share In Cash

(RTTNews) - Health Care REIT, Inc. (HCN) and Revera, Inc. said they have entered into a definitive agreement to acquire Regal Lifestyle Communities Inc. (RLC.TO) through an existing 75/25 joint venture for C$12 per share in cash, or a total enterprise value of C$766 million, or $623 million.

The transaction is expected to close in the second half of 2015. The initial cash yield is anticipated to be 6.1 percent and anticipated to be immediately accretive to FFO and FAD per share.

Regal is a publicly traded Canadian corporation that owns and operates 23 high-quality seniors housing communities with over 3,600 units. This private pay portfolio includes 13 communities in Ontario, seven in Quebec, and one each in British Columbia, Saskatchewan and Newfoundland.

Around 83 percent of the portfolio's net operating income is derived from Toronto, Montreal, Ottawa and Vancouver.

The acquisition strengthens HCN's and Revera's leading positions in Canada and is consistent with the partnership's focus on acquiring best-in-class assets in premium markets.

Upon completion of the transaction, HCN will own an interest in over 21,500 seniors housing units, representing approximately 10 percent of the Canadian seniors housing supply and 15 percent of the supply in the five largest Canadian markets.