Atria Management Announces Completion of Growth-Focused Capital Raise with Fremont Group and Ventas

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Dec 20, 2017, 15:15 ET

LOUISVILLE, Ky., Dec. 20, 2017 /PRNewswire/ -- Senior executives for Atria Senior Living have raised growth capital by selling 50% of their ownership interest in Atria's business to Fremont Realty Capital, the real estate private equity business unit of the Fremont Group, the investment office of the Bechtel family of San Francisco. The transaction values Atria at a substantially increased level compared to the 2012 transaction in which the management team increased their stake to 66% and Ventas acquired 34% of the business. Proceeds have been reinvested in Atria, and Ventas has also made an additional investment in Atria to maintain its 34% ownership stake without dilution.

Proceeds will also be invested, along with an additional investment by Ventas, in a new venture that will act as general partner ("GP") in a $1 billion real estate venture(s) with a dedicated focus on development and redevelopment opportunities in high-barrier-to-entry markets.

The transactions will result in Atria's senior executives, Fremont and Ventas owning both Atria's management services business and the newly formed real estate venture GP in 33%, 33% and 34% shares, respectively. Additionally, the GP intends to raise $300-$400 million of limited partner capital to fund the dedicated development and redevelopment strategy.

"The Atria management team has worked together to build Atria into a world-class senior housing management services business dedicated to providing exceptional service for its residents, rewards to its dedicated employees and high quality returns for its business partners and property owners for which it provides management services," said Atria Senior Living Chairman and CEO John A. Moore. "With this additional capital we can continue to build scale and accelerate our investments in infrastructure and systems to better position us for both the current environment and our maturing industry as it prepares for the demographic wave that is around the corner."

"It is very exciting to partner with both Fremont and Ventas. Fremont's track record and experience building high-quality businesses for the long-term and the talent of their team will be a great asset for Atria," Moore continued. "And we also couldn't have asked for a better partner than Ventas. Ventas has been supportive and invaluable in helping us grow our business, and we're thrilled to continue down this path together."

"Atria has built an industry leading platform and we couldn't be more thrilled to become partners with the Atria management team and Ventas. Atria's operating capabilities are forward looking and represent the future of the industry. We look forward to being long term value adding partners," said Claude Zinngrabe, Managing Partner, Fremont Realty Capital.

Atria has increased the number of communities it manages on a long-term basis from 125 to over 200, doubling revenue under management since 2011, when Ventas purchased substantially all of Atria's real estate. Atria's pure play seniors housing management services platform now operates in 28 states and seven Canadian provinces, for Ventas as well as over 10 other real estate owners. Atria has significant market presence in high barrier to entry markets, including metropolitan New York, the Bay Area of Northern California, Southern California and Boston. It employs more than 16,000 people and is home to over 20,000 residents. Atria operates a state-of-the-art Support Center in Louisville, Kentucky and has grown its home office employment 50% since 2011.

About Atria Senior Living:
Atria Senior Living is a leading operator of independent living, assisted living, supportive living and memory care communities in over 200 locations in 27 states and seven Canadian provinces. We are the residence of choice for more than 21,000 seniors, and the workplace of choice for more than 15,000 employees. We create vibrant communities where older adults can thrive and participate, know that their contributions are valued, and enjoy access to opportunities and support that help them keep making a positive difference in our world. For more information about Atria, visit AtriaSeniorLiving.com.

About Fremont Realty Capital:
Fremont Realty Capital is the real estate private equity business unit of the Fremont Group, the investment office of the Bechtel family of San Francisco. Since formation in 1997, Fremont Realty Capital has provided investors with superior risk-adjusted returns and value-creation through investments in non-traditional and traditional real estate sectors, both domestically and abroad. Our success results from a disciplined investment strategy, enduring relationships with best-in-class operating partners, and the collective experience of the firm's principals. The firm has made investments representing over 365 properties in 11 countries over 19 years totaling more than $5 billion of total capitalization.

For more information, visit FremontGroup.com/Fremont-Realty-Capital.

About Ventas:
Ventas, Inc., an S&P 500 company, is a leading real estate investment trust. Its diverse property portfolio of more than 1,200 assets in the United States, Canada and the United Kingdom consists of seniors housing communities, medical office buildings, life science and innovation centers, inpatient rehabilitation and long-term acute care facilities, health systems and skilled nursing facilities. Through its Lillibridge subsidiary, Ventas provides management, leasing, marketing, facility development and advisory services to highly rated hospitals and health systems throughout the United States. References to "Ventas" or the "Company" mean Ventas, Inc. and its consolidated subsidiaries unless otherwise expressly noted.

More information about Ventas and Lillibridge can be found at www.ventasreit.com and www.lillibridge.com.

CONTACT: Andrea Brady, [email protected]

SOURCE Atria Senior Living