Ventas To Buy Life Science And Medical Real Estate Assets For $1.5 Bln

(RTTNews) - Ventas Inc. (VTR) Tuesday said it agreed to acquire life science and medical real estate assets of Wexford Science & Technology LLC from affiliates of Blackstone Real Estate Partners for $1.5 billion in cash.

Ventas said the deal will add a related business line to its diverse portfolio with 25 class-A assets that are leased by leading universities, academic medical centers and research companies.

The transaction is subject to the satisfaction of customary closing conditions and expected to close in the fourth quarter of 2016.

"This acquisition and alliance with Wexford are a natural fit for Ventas, and reinforce our position as the premier provider of capital at the intersection of healthcare and real estate. We are excited to add these world class institutions and advantaged real estate to our portfolio," said Ventas Chairman and Chief Executive Officer Debra Cafaro.

The portfolio includes 23 operating properties that contain 4.1 million square feet, are 97 percent leased and derive 73 percent of revenue from excellent credit tenants, including 11 universities with an average credit rating of Aa2, investment grade companies and public companies with an equity market capitalization exceeding $1 billion.

The total consideration for the transaction is $1.5 billion plus the assumption of $33 million of liabilities. The total consideration for the 23 operating properties is $1.4 billion; $88 million for the two development properties, and $50 million for the development sites.

Ventas sees the acquisition to be accretive to Ventas's normalized funds from operations in 2017 by $0.07 to $0.09 per share on a leverage-neutral basis.