Kirkland & Ellis LLP represented Ventas, Inc. (NYSE: VTR), which announced yesterday that it has signed a definitive agreement to acquire substantially all of the life science and medical real estate assets of Wexford Science & Technology, LLC, from affiliates of Blackstone Real Estate Partners VIII L.P. for $1.5 billion in cash. The acquisition will add a related business line to Ventas’s diverse portfolio with 25 class-A assets that are leased by leading universities, academic medical centers and research companies, including Yale University, the University of Pennsylvania Health System, Washington University in St. Louis, Wake Forest University and Alexion Pharmaceuticals, Inc.
The portfolio includes 23 operating properties that contain 4.1 million square feet, are 97 percent leased and derive 73 percent of revenue from excellent credit tenants, including 11 universities with an average credit rating of Aa2, investment grade companies and public companies with an equity market capitalization exceeding $1 billion. It also includes two development assets encompassing approximately 400,000 square feet, that are nearly 60 percent pre-leased and affiliated with Duke University and Wake Forest University. The company is also acquiring nine development sites principally contiguous to existing assets.
As part of the acquisition, Ventas will enter into a long-term management and pipeline agreement with Wexford, whereby Ventas will own the existing real estate portfolio, Ventas will have exclusive rights to jointly develop future projects with Wexford, and Wexford will continue to manage the portfolio. More information on the transaction is available here.
The Kirkland team included real estate partners Daniel Perlman, Joshua Hanna, David Rosenberg, Adam Grant and Justin Bender, corporate partners Edward Schneidman and Eric Sievertsen, and tax partner William Levy.
Other advisors on the deal include: J.P. Morgan Securities LLC acting as financial advisor to Ventas; Eastdil Secured group of Wells Fargo Securities LLC acting as financial advisor to Blackstone and Simpson Thacher & Bartlett LLP acting as its legal counsel.