Cindat Capital enters U.S. senior housing market

Chinese companies Cindat Capital Management Ltd. and Union Life Insurance Co. have formed a joint venture to invest $930 million in a real estate portfolio of senior housing and care facilities held by U.S. healthcare company Welltower.

The transaction represents Cindat’s first U.S. healthcare real estate investment.

The portfolio comprises 11 senior housing properties master leased to Brookdale Senior Living and 28 long-term/post–acute care facilities master leased to Genesis Healthcare. Cindat and Union Life will own a 75 percent interest in the portfolio, with Welltower retaining a 25 percent interest.

The transaction is expected to close by year-end and is subject to customary closing conditions.

The sale is part of Welltower’s efforts to reposition its portfolio. In total, Welltower is increasing its disposition guidance for the year from $1.3 billion to $4.1 billion. As of Sept. 30, 2016, the company had closed on