NEW YORK — Ventas Inc. said Friday that it is buying the real estate assets of Atria Senior Living Group for $1.5 billion in cash and stock, giving it a portfolio of 118 homes in wealthy coastal regions. Atria also has facilities in Lakewood and Boulder.
The health care real estate investment trust also is assuming $1.6 billion in debt.
Ventas said the deal will make the company the largest owner of senior housing communities in the country. The Chicago company owns nearly 600 assets in 44 states.
Ventas shares fell $2.05, or 3.7 percent, to $52.70 in afternoon trading. But the news sent shares of rival Brookdale Senior Living Inc. up $3.22, or nearly 20 percent, to $19.85. Shares of others in the senior living category also rose, with Capital Senior Living Corp. up 6 percent to $6.15, Emeritus Corp. up 14 percent to $19.50 and Sunrise Senior Living Inc. rising 3.4 percent to $3.61.
Under terms of the transaction, Ventas will pay 24.96 million shares, worth about $1.35 billion, and $150 million in cash. It expects the acquired homes to generate about $640 million in revenue next year and to add to its profit in 2012, after transaction costs.
Atria, based in Louisville, Ky., is the country’s fourth-largest operator of assisted-living properties, with homes in the New York metropolitan area, New England and California. It is owned by private equity funds managed by Lazard Real Estate Partners.
Before the transaction closes, scheduled for the first half of 2011, Atria will spin off its management company, which will continue to operate the assets in a deal with Ventas.
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