FX.co ★ NorthStar Healthcare Income To Be Acquired By Welltower In $900 Mln Deal

NorthStar Healthcare Income Inc. has entered into an agreement to be acquired by a subsidiary of Welltower Inc. in a transaction valued at approximately $900 million, to be conducted in cash.

According to the terms of the merger agreement, shareholders of NorthStar Healthcare will receive $3.03 per share in cash. This offer exceeds the net asset value per share of $2.96, as assessed by NorthStar Healthcare's board of directors on June 30, 2024. The transaction is anticipated to be finalized in the first half of 2025.

In a separate announcement, Welltower has unveiled the establishment of its private funds management division, designed to oversee third-party capital. The new division will seek investment opportunities across the capital structure within the healthcare and wellness real estate sectors.

A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) is committing 20%, or up to $400 million, as an anchor limited partner to the first fund managed by this new division. Welltower, along with its management, is likewise contributing up to 20% of the limited partner capital, totaling to a potential $400 million investment.

The initial investments by this new division will include a portfolio of six premium senior housing communities, acquired for a total sum of $240 million. This acquisition was conducted through a privately negotiated off-market transaction.