TOLEDO, Ohio (AP) -- Health Care REIT Inc. plans to spend $697 million in cash to buy a majority ownership stake in 47 Canadian senior housing communities.
The Toledo, Ohio, real estate investment trust said Wednesday its total consideration amounts to $1 billion, counting debt assumption. Health Care REIT invests in senior housing and health care real estate.
Under the agreement, Health Care REIT will acquire a 75 percent stake in the communities from Revera Inc. Those properties are located in cities like Toronto, Ottawa and Vancouver. Revera, a Canadian company, will hold the remaining stake and manage the properties under an incentive-based contract.
The boards of both companies have approved the deal, which is expected to close in the second quarter.
Health Care REIT also said Wednesday that it will offer 18 million shares of stock to raise proceeds to repay debt and invest in other properties. The company also is granting underwriters a 30-day option to buy an additional 2.7 million shares to cover excess demand.
UBS Investment Bank, Deutsche Bank Securities, and Wells Fargo Securities will act as joint book-running mangers for the offering.
Shares of Health Care REIT closed at $75.62 on Tuesday and have climbed more than 23 percent so far this year.
- Health Care Industry
- real estate investment trust