CPPIB forms joint venture with REIT Welltower

Canada Pension Plan Investment Board, Toronto, on Thursday said it and real estate investment trust firm Welltower have created a joint venture to buy a 97.5% stake in six Florida-based senior housing properties for a combined $555 million.

CPPIB, which manages the assets of the C$282.6 billion ($203 billion) Canada Pension Plan, Ottawa, acquired a 43.9% stake from Welltower, which will hold a 53.6% stake, said Dan Madge, CPPIB spokesman.

Real estate developer Discovery Senior Living holds the remaining 2.5% and will continue to operate the properties, known as Aston Gardens.

It’s the latest joint venture between the board and Welltower, formerly known as Health Care REIT. In August 2015, CPPIB and the firm acquired a combined 50.5% interest in a portfolio of medical office buildings in Southern California from another health-care real estate investment trust, G&L Realty. Terms of that deal were not disclosed.

Earlier this year, the board along with the $300 billion Singapore sovereign wealth fund GIC and student housing operator Scion formed a joint venture to acquire University House Communities Group, a portfolio of U.S. college student residences, from private REIT InvenTrust Properties Corp. for $1.4 billion.

The CPPIB had C$37 billion invested in real estate as of Dec. 31.