Blackstone Real Estate Group has entered the Canadian seniors housing market, creating a joint venture with Selection Group to acquire a portfolio of 13 seniors’ housing residences in Quebec containing 3,548 independent-living units.
The properties are concentrated in the Montreal area, but also include three in the Eastern Townships and one apiece in Gatineau, Trois-Rivières and Rimouski. All are being acquired from Revera, which has been a 70 per cent partner with Selection Group, but is exiting the joint venture.
This deal will also facilitate the completion of a 300-plus-unit property and the lease-up of an additional 700 recently completed units at a newly developed property in Gatineau.
The firms say the 300-plus-unit property in Montreal represents an investment of over $100 million and will provide 250 construction jobs, then 50 permanent positions once it is operating.
“We are pleased to partner with Selection Group to acquire these residences that provide Quebec’s senior community with a high-quality, amenitized independent-living option,” said Qahir Madhany, managing director in Blackstone’s real estate group, in a statement provided to RENX. “We look forward to ensuring these communities remain great places for residents to live over the long-term.”
Financial details were not disclosed.
Residences focused on Montreal area
The residences are:
– Jardins des Sources; Cours du Moulin; Sélection Terrebonne; Vice Versa Saint Jerome; Jardins d’italie; Sélection St. Jean; and Selection Repentigny in Greater Montreal;
– Havre de l’Estuaire (Rimouski)
– Havre des Cantons; Rock Forest; and Rock Forest II in the Eastern Townships;
– Coin St-Paul in Trois-Rivières;
– and Gatineau Plateau in Gatineau.
All of the acquisitions have closed, with the exceptions of Rimouski and Sélection Repentigny, which are expected to close in the coming months.
“Selection Group is looking forward to this new partnership with Blackstone, a leading global investment business,” said Réal Bouclin, founding president and CEO of Selection Group, in the statement.
The apartments provide amenitized rental housing for active seniors and offer light-touch care, including assistance with medication and meals, to residents who need such support.
Blackstone has been seeking increased investment in Canada because of the positive tailwinds in areas such as job growth and immigration, and the future growth potential of the market. This is the international real estate giant’s first foray into the Canadian seniors housing sector.
Founded in 1989, Selection Group owns and/or operates over 13,000 units spread across 50 properties and developments.
Second portfolio sale by Revera
This is the second major portfolio divestment by Revera in recent months.
The seniors living operator sold eight Ontario properties (in Richmond Hill, Oshawa, Mississauga, Kitchener and Ottawa) comprising over 460 units to Spring Living Retirement Communities in May.
Spring Living is a new entity owned by Toronto-based Marlin Spring. The firm hired former Sienna Senior Living CEO Lois Cormack to run Spring Living, which now owns 10 residences comprising about 580 suites.