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Welltower Announces $1 Bln In New Off-Market Investments

Welltower Inc. (WELL) announced new off-market investment volume of $1.0 billion at a blended cap rate of 6.4% comprised of 11 separate Seniors Housing and Medical Office transactions. The investment activity is in addition to the previously announced $80 million Johns Hopkins transaction and $400 million 23 asset MOB portfolio acquisition, totaling $1.5 billion in transactions announced since third quarter 2018.

The Seniors Housing acquisitions consist of $725 million in transaction volume at a blended cap rate of 6.6% across four separate transactions. Three of these transactions build on relationships with existing Welltower operating partners. The Medical Office acquisitions consist of $280 million in transaction volume at a blended cap rate of 5.9%.

Welltower noted that it is under contract to acquire a 75% ownership interest in two state-of-the-art "Class A+" medical office buildings under development in Charlotte, North Carolina to be delivered in the second-quarter and third-quarter of 2020. Both buildings are 100% master-leased to Atrium Health for 15 years. This project is part of a 5.5-acre multi-phase health care anchored mixed-use development located next to Atrium Health's flagship Carolinas Medical Center campus. Once completed, these assets will house integrated specialty clinical practices for Atrium Health including the Sanger Heart and Vascular Institute.

As part of this transaction, Welltower will form a joint venture with the highly reputable Southeast developer, Pappas Properties. The joint venture is exploring additional opportunities to grow in the region together and can further densify this project with up to 180k additional square feet.

In a separate press release, Welltower announced that an affiliate of Qatar Investment Authority or "QIA", Qatar's sovereign wealth fund, has established an interest in the Company's common stock through a $300 million investment and has an option to acquire an interest in a development pipeline of urban senior living communities, representing the initial investments in a long-term partnership.

Welltower also announced the appointments of Karen DeSalvo, MD and Johnese Spisso, MPA to its Board of Directors.

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