Le Groupe Maurice to partner with Ventas through sale of 85% interest in its Canadian senior housing portfolio
September 04, 2019
2.40 Billion CAD
On June 3, 2019, Le Groupe Maurice ("LGM") announced the acquisition of its Class A portfolio, valued at C$2.4 billion, through a 85/15 percent equity partnership with Ventas, Inc. ("Ventas"). The Class A portfolio consists of 31 purpose-built seniors housing communities and four in-progress developments, expected to contain roughly 1,400 units in attractive locations in Montreal. Ventas also acquired exclusive rights to fund and own all additional developments under a pipeline agreement with LGM.
The transaction will close in two phases. Phase I will close on July 3, 2019 and includes a C$987 million bridge loan from Ventas to LGM to enable it to buy out its current private equity partner, Ipso Facto. Upon satisfaction of all customary closing conditions, Phase II will close in the third quarter of 2019, and will include the full investment and partnership closing.
This transaction will increase Ventas’ portfolio from 41 properties to 76 properties. Additionally, this partnership will establish a new platform for growth with LGM, which will continue to manage and further develop the portfolio under the LGM brand, maintaining its vision of quality and innovation in anticipation of a growing senior housing market.
LGM is a market leader in design, development, and management of progressive residences for seniors in Quebec, with a portfolio of 35 communities.
Ventas is an S&P 500 company and leading real estate investment trust with a diverse portfolio of approximately 1,200 assets in the United States, Canada, and the United Kingdom. Its portfolio consists of seniors housing communities, medical office buildings, university-based research and innovation centers, inpatient rehabilitation and long-term acute care facilities, and health systems.
McCarthy Tétrault LLP is advising LGM with a team led by David McAusland and Hadrien Montagne that includes Mathieu LeBlanc, Alexandra Tremblay, Isabelle Nazon, Thomas Etienne, Alexis Hudon and Jessica Cytryn (Business), Richard O’Doherty and Marjolaine Hémond Hotte (Financial Services), Diana Theophilopoulos (Employment), Cindy Vaillancourt and Martin Thiboutot (Environment), Véronique Wattiez Larose, Charles Morgan and Emily Hutchinson (Intellectual Property), François Giroux and Sébastien Cusson (Litigation), Louis-Martin Dubé, Marie-Josée Marcoux and Mathieu Cantin (Real Property and Planning), Dominic Thérien and Julien Beaulieu (Competition and Regulatory), and Christian Meighen, Marie-Soleil Landry and Quentin Lageix (Tax).