Welltower™ Inc. (NYSE:WELL) Launches Private Funds Management Business

– Welltower Inc. has launched a private funds management business to manage third-party capital.

– The new business will invest across the capital structure in healthcare and wellness real estate sectors.

– A subsidiary of the Abu Dhabi Investment Authority (ADIA) has committed up to $400 million as an anchor LP in the first fund.

– Welltower and its management are also contributing up to $400 million in LP capital.

– The first fund will focus on acquiring and stabilizing seniors housing portfolios in the U.S. using Welltower’s data science platform.

– Welltower has deployed nearly $20 billion in capital since Q4 2020 and has strong industry relationships to source opportunities.

– The company will continue acquiring unstabilized assets on its balance sheet alongside the new fund.

– Welltower sees attractive acquisition opportunities due to market conditions, including high interest rates and a fragmented ownership landscape.

– Shankh Mitra, Welltower’s CEO: “We have been patiently awaiting the optimal environment to launch this platform… We expect Welltower’s operating platform and proprietary data science capabilities will serve as a critical resource and competitive advantage for the private funds management business.”

– Mohamed AlQubaisi, Executive Director of Real Estate at ADIA: “Welltower has a successful track record in healthcare and wellness real estate… Its data science-led approach is a key differentiator and will play an important role in the new funds management business.”

– Initial investments include a $240 million portfolio of six high-quality seniors housing communities with 778 units and 92% occupancy.

– Welltower is also under contract to acquire NorthStar Healthcare Income, Inc.’s 40-community portfolio for approximately $900 million.

– The NorthStar Portfolio, with 4,886 units, is expected to be allocated to the funds management business after closing.