Welltower To Sell 4 Communities To Resolve ‘competition Concerns’ Over Amica Deal In Canada

Senior living real estate investment trust Welltower (NYSE: WELL) has agreed to sell four communities in Canada as part of a new agreement with the Canadian Competition Bureau.

The Canadian government agency on Wednesday announced that it had reached a consent agreement with Welltower to resolve “competition concerns” related to its deal, announced last year, to acquire a senior living portfolio managed by Amica Senior Lifestyles valued at $4.6 billion CAD and operate them under a RIDEA contract.

Under its agreement with the Canadian government agency, Toledo, Ohio-based Welltower will sell four retirement homes in Victoria, Northwest Vancouver, Brampton and Ottawa, Canada. The Competition Bureau noted the REIT must sell the properties to independent buyers it approves.

“As the Canadian population ages, the retirement home industry becomes even more important, with demand expected to accelerate rapidly over the next decade,” the government agency wrote in its announcement. “Competition in the retirement home sector plays a crucial role in keeping prices in check and pushing providers to maintain high standards of care and modern, well-maintained facilities.”

A Welltower spokesperson told SHN that the REIT worked with the Competition Bureau to come to a “mutually acceptable outcome” that resolved the agency’s concerns.

Welltower wasn’t the only senior housing company in the sights of Canadian regulators in recent weeks. On March 12, the Competition Bureau also reached a consent agreement with senior housing company Chartwell related to an acquisition of six retirement homes from Sifton Properties. Chartwell agreed to sell a retirement home located in Waterloo, Ontario, to settle the agency’s concerns.

Welltower and Chartwell previously co-owned a portfolio of communities together in Canada until they unwound a joint-venture agreement in 2023. Under the JV split, Chartwell gave the U.S. REIT ownership of 23 assets in exchange for Welltower’s interest in 16 assets and a payment of $97.2 million.

REITs like Welltower and its peer Ventas (NYSE: VTR) have invested in Canadian companies and properties in the last few years on a belief that there is still more opportunity for the industry north of the U.S. border. Welltower currently owns 139 senior housing communities in Canada.

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