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Health care infrastructure REIT Welltower Inc. (WELL-N) is acquiring the $4.6-billion portfolio of Toronto-based Amica Senior Lifestyles from Ontario Teachers’ Pension Plan Board (OTPP).
Welltower, based in Toledo, Ohio, plans to fold Amica's 31 income-producing properties, seven communities under construction and nine entitled development parcels located in Ontario and British Columbia into its portfolio.
Welltower says the income-producing properties are valued at $3.2 billion, while the seven sites under construction are said to be worth $1.25 billion and the nine development parcels are valued at $150 million.
The transaction is expected to close in Q4 2025, and Welltower will assume $560 million of debt insured by the Canada Mortgage and Housing Corp.
"These communities will join the top echelons of the Welltower portfolio, reflected by their location within the most desirable neighbourhoods in all of Canada and ultra-luxe amenities and finishes,” Shankh Mitra, Welltower's CEO, said in the announcement Sunday afternoon.
Also announced is a partnership between Welltower and Amica that will concentrate on key markets.
Amica’s portfolio
Founded in 1996, Amica owns, operates and develops independent and assisted living facilities and memory care facilities for seniors, with sites in cities such as Toronto, Vancouver, Victoria and Ottawa. The average resident stay is three to four years, Welltower says.
Of its 31 in-place communities, 24 are stabilized and seven are recently opened and still in lease-up. The in-place properties are being acquired at a “substantial discount to estimated replacement cost,” according to Welltower.
Amica’s stable assets are said to have revenue per occupied room growth exceeding Welltower's overall senior housing operating portfolio over the past five years.
The properties under construction are scheduled to be acquired between 2025 and 2027. Welltower says the sites are in “highly affluent and supply-constrained neighbourhoods”.
Also part of the transaction is Welltower acquiring a minority interest in Amica’s management company. The new partnership will focus on expansion in the target markets of Toronto, Vancouver and Victoria.
"We are thrilled to announce our long-term partnership with Welltower, which shares our passion for providing the highest quality care and services to the seniors population,” Jens Cermak, CEO of Amica, said in the release. He also expects Amica will be one of the “key beneficiaries” of Welltower's data science capabilities, which will help scale its platform.
Amica and OTPP
OTPP said it made its first investment in Amica in 2010. Then in 2015 the teachers’ pension plan acquired Amica and its 25 properties through its subsidiary BayBridge Seniors Housing Inc., making it private.
Bloomberg reported in 2024 OTPP was considering a sale of Amica after it began moving its real estate investing team to Cadillac Fairview Corp.
“We are excited to watch the company reach new heights in the future and wish Amica, the management team, and Welltower continued success in their next stage of growth,” Terry Woodward, senior managing director of private capital at OTPP, said in a release.
Welltower’s expectations
Welltower owns properties in the U.S., Canada and the U.K., with a recent acquisition in Canada being the purchase of the Jazz portfolio from Cogir for $885 million.
The Ohio-based company says it will apply a similar strategy it used for Cogir with the Amica transaction: acquiring Canadian seniors housing portfolios at significant discounts to replacement cost and driving strong performance in affluent Canadian markets through a partnership.
Welltower made US$6 billion in acquisitions in 2024, the highest amount in its history.
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