BX Blackstone Inc

By Josh Beckerman 

Ventas Inc., a real-estate investment trust focused on medical properties, has signed a $1.5 billion deal to buy assets from a Blackstone Group LP real-estate fund, marking its entry into university-affiliated properties.

The transaction comprises substantially all of the life sciences and medical properties of Wexford Science & Technology LLC, including 23 operating properties with 4.1 million square feet. Tenants include Yale University, Wake Forest University and Alexion Pharmaceuticals Inc.

Ventas and Wexford also plan to jointly develop new projects.

Ventas said the deal will add "high-quality properties with long lease terms and highly rated, institutional quality tenants." Ventas expects life sciences-focused real estate to benefit from trends including the aging U.S. population and biopharmaceutical growth.

BioMed Realty Trust Inc., which bought Wexford in 2013, was sold to Blackstone in January for about $8 billion. Ventas said Tuesday that Wexford will be independently owned and operated.

Ventas expects the deal will close in the fourth quarter and add 7 cents to 9 cents a share to normalized funds from operations in 2017.

Ventas also said it would sell up to 10.35 million shares, planning to use the proceeds toward the acquisition.

In after-hours trading, Ventas shares were flat at $73.81.

In April, Ventas said it had an "excellent" first quarter, with 7% growth in comparable normalized FFO per share, and reaffirmed its 2016 guidance.

Last year, Ventas bought Ardent Health Services for $1.75 billion and spun off most of its post-acute and skilled-nursing properties into Care Capital Properties Inc.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

July 05, 2016 18:18 ET (22:18 GMT)

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