NorthStar Healthcare Income To Be Acquired By Welltower In $900 Mln Deal

(RTTNews) - NorthStar Healthcare Income Inc. has agreed to be acquired by an affiliate of Welltower Inc (WELL) in an all-cash transaction valued at approximately $900 million.

As per the terms of the merger agreement, NorthStar Healthcare's stockholders will receive $3.03 per share in cash. This per share consideration exceeds the net asset value per share of $2.96 determined by NorthStar Healthcare's board of directors as of June 30, 2024. The deal is expected to close in the first half of 2025.

In a separe press release, Welltower announced the launch of its private funds management business to manage third party capital. The new business will pursue opportunities to invest across the capital structure in the healthcare and wellness real estate sectors.

A wholly owned subsidiary of the Abu Dhabi Investment Authority or "ADIA" is committing, as an anchor LP to the first fund managed by the new business, 20% or up to $400 million of capital for the first fund. Welltower and Welltower's management is also contributing 20% of the LP capital up to a total of $400 million.

The initial investments by the new business will include a portfolio of six high-quality seniors housing communities for a total purchase price of $240 million, which was acquired through a privately negotiated off-market transaction.