Ventas to buy Atria properties for $1.5 billion

BANGALORE (BestGrowthStock) – U.S. healthcare real-estate investment trust Ventas Inc (VTR.N: ) said it will buy the real-estate assets of Atria Senior Living Group for about $1.5 billion, making it the largest U.S. owner of senior housing communities.

The company said it will pay $150 million cash and 25 million common shares, valued at $1.35 billion, to acquire 118 senior housing communities from Atria.

Ventas will also assume $1.6 billion of Atria’s net debt.

Upon completion of the transaction, Ventas will own over 35,000 senior housing units across 350 properties, the company said.

Ventas expects the deal to generate revenue of about $640 million in 2011 and to add to its 2012 normalized funds from operations per share. The deal will also boost its net operating income by high-single-digits percent annually.

Louisville, Kentucky-based Atria, the fourth largest operator of assisted living properties in the United States, is owned by private-equity funds managed by Lazard Real Estate Partners.

The assets under the deal are mostly located in wealthy metropolitan enclaves and coastal communities around New York, New England and California, and would cost Ventas about $230,000 per unit.

Current Atria management will to continue to manage the assets after deal close, which is expected in the first half of 2011.

Ventas’ shares, which have gained about 6 percent since it agreed to buy 58 senior-living communities from a unit of Sunrise Senior Living (SRZ.N: ) about two weeks ago, closed at $54.75 on the New York Stock Exchange.

(Reporting by Krishnakali Sengupta in Bangalore; Editing by Aradhana Aravindan)

Ventas to buy Atria properties for $1.5 billion