Welltower, a real estate investment trust that invests in healthcare infrastructure, has launched a private funds management business to manage third-party capital, said a news release Jan. 29.
The new business will “pursue opportunities to invest across the capital structure in the healthcare and wellness real estate sectors,” the news release said.
A wholly owned subsidiary of the $1.1 trillion Abu Dhabi Investment Authority has committed — as an anchor limited partner in 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 "will also contribute 20% of the capital up to a total of $400 million," the release said.
By using Welltower’s data science platform, the first fund will seek to identify and acquire senior housing portfolios in the U.S., “focusing on properties that are either stable or have a near-term path to stabilization with an ability to enhance the cash flow profile through Welltower's operating platform and the secular tailwinds of the industry,” the release noted.
Welltower said it believes the backdrop for acquisitions within the senior housing sector remains attractive, with capital deployment opportunities having expanded further in recent quarters.
A Welltower spokesperson declined to comment further.
