Healthcare Business News

Ventas buys 34% stake in Atria Senior Living

By Joe Carlson
Posted: December 26, 2012 - 2:00 pm ET

Ventas, a large publicly traded healthcare real estate investment trust, has paid about $242 million to buy a 34% share in an assisted-living management firm that was spun off from another company Ventas bought in 2011.

After the deal, Atria Senior Living became 100% jointly owned by Ventas and Atria's senior executive managers, a news release said. Atria's employees, including Chairman and CEO John Moore, still own 66% of the management company, which operates more than 118 private-pay senior assisted-living facilities.

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In May 2011, Chicago-based Ventas paid $3.1 billion to buy most of the assets of Atria Senior Living Group, Louisville, Ky., including the assumption or repayment of $1.6 billion in debt. That deal came just months after Ventas paid $7.4 billion to buy REIT Nationwide Health Properties, Newport Beach, Calif., becoming one of the largest REITs in the country at the time.

Before closing the Atria deal, Atria's executives spun off the management company called Atria Senior Living that was controlled in part by Lazard Freres Real Estate Investors. Effective Dec. 21, Ventas has acquired the 34% of Atria Senior Living owned by Lazard Freres.

The transaction includes an additional $44 million from Ventas that eliminates its obligation to make a performance-based contingency payment agreed to in its 2011 acquisition of Atria Senior Living Group, according to the news release. A Ventas spokeswoman declined to comment further.

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