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Cindat makes first move into US healthcare

The Beijing-headquartered investment manager has formed a JV with Welltower and Union Life Insurance to invest $930m in a portfolio of senior housing and healthcare assets.

Cindat Capital Management has formed a $930 million joint venture with Chinese life insurer, Union Life Insurance, and New York-listed real estate investment trust Welltower to make its first foray into US healthcare.

The joint venture will acquire a Welltower portfolio of seniors housing and long-term/post-acute care real estate assets. The portfolio is comprised of 11 seniors 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, with Welltower retaining a 25 percent interest.

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

“With aging demographics and US healthcare trends driving the need for innovative health care infrastructure, we believe the sector represents an attractive long-term investment opportunity,” said Greg Peng, chief executive of Cindat Capital Management.

“We are pleased to announce this partnership with Welltower, the leader in health care real estate. We have a significant appetite for investing in the sector.”

In May Cindat acquired a 70 percent stake in seven Manhattan hotels for $571.4 million as part of a joint venture with New York-listed hospitality specialists Hersha Hospitality Trust.

In the same month it partnered with CITIC Capital to acquire a majority stake in a luxury residential development project in London. The total equity size of the investment was understood to be $155 million.