July 28, 2020
Ventas, Inc. has entered into a revised master lease agreement and other agreements with Brookdale Senior Living Inc. The revised agreements come in response to the unprecedented challenges to the senior living industry caused by the COVID-19 pandemic.
Among other provisions, the agreements entail a rent reduction on the 121 senior living communities Brookdale leases from Chicago-based Ventas. They also mean a $235-million up-front consideration for Ventas, and the ownership transfer of five senior living properties in Brookdale’s portfolio to Ventas.
Brookdale will now manage the five communities for Ventas under a terminable management agreement.
“The arrangements that we are announcing today benefit both companies, by providing Ventas shareholders with certainty, flexibility and the opportunity for upside, enhancing Brookdale’s stability and liquidity, and creating the most conducive environment for Brookdale to operate our communities safely and productively,” said Debra A. Cafaro, Ventas’ chairman and CEO.
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