Welltower Agrees To Acquire Northstar Healthcare Income For $900m

TOLEDO, Ohio and HOUSTON — An affiliate of Welltower Inc. (NYSE: WELL) has entered into an agreement to acquire NorthStar Healthcare Income Inc., a non-listed REIT that owns a diversified portfolio of seniors housing properties throughout the United States, for roughly $900 million. 

Toledo-based Welltower will take ownership of NorthStar Healthcare’s portfolio of 40 seniors housing communities in the acquisition. Founded in 2010, Houston-based NorthStar Healthcare’s portfolio includes independent living, assisted living and memory care properties. 

“We expect that this portfolio will serve to further enhance our regional densification strategy through our existing geographic footprint and network of exceptional seniors housing operators,” says Nikhil Chaudhri, co-president and chief investment officer of Welltower, calling the agreement a “win-win outcome for shareholders of both companies.” 

NorthStar Healthcare stockholders will receive $3.03 per share according to the agreement, exceeding the net asset value per share of $2.96 as decided by NorthStar Healthcare’s board of directors in June 2024. 

Under terms of the agreement, the NorthStar board of directors and advisors may initiate, solicit and consider alternative acquisition proposals during a 40-day “go shop” period beginning from the date of the merger agreement. 

The all-cash transaction is scheduled to close within the first half of this year, subject to customary closing conditions including approval by NorthStar Healthcare’s stockholders. Stockholders will vote on the merger at a special meeting on a to-be-announced date. 

CS Capital Advisors is serving as financial advisor to NorthStar Healthcare, with Morrison & Foerster LLP serving as the REIT’s legal advisor. 

Welltower owns interests in seniors housing, post-acute community and outpatient medical properties throughout the United States, Canada and the UK.

Welltower’s stock price closed on Wednesday, Jan. 29 at $134.93 per share, up from $86.93 a year ago, a 55.2 percent increase.

— Hayden Spiess

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