Welltower, a US-based real estate investment trust specialising in senior housing and healthcare infrastructure, has acquired Barchester Healthcare, one of the UK’s largest care home operators, in a £5.2 billion transaction. The sellers are Irish businessmen J.P. McManus, John Magnier, and Dermot Desmond, who have owned the company since 1994 and are now making a full exit.
The deal marks one of the largest UK healthcare real estate transactions to date and highlights growing international investor appetite for senior living and long-term care assets.
The portfolio includes 223 care homes and hospitals with about 14,500 beds, alongside 21 development projects. The transaction combines 111 communities managed by Barchester under a RIDEA structure — the REIT Investment Diversification and Empowerment Act model, which allows a property owner to participate directly in the operating performance of the business.
Around 152 properties are leased on long-term triple-net agreements that include 3.5% annual rent escalators and five-year rent reset options.
“The announcements mark a watershed moment in Welltower’s history as we continue to evolve: intensifying the company’s focus on seniors housing and accelerating the operational and technological modernization of the business through the Welltower Business System,” said Shankh Mitra, chief executive officer of Welltower.
“We are excited to expand our presence in the UK and continue to partner with the highest quality operators as evidenced by the Care Quality Commission in the UK (CQC) having rated 86% of our communities as good or outstanding, well above the national average of 72%, with none of our properties having been rated as inadequate.”
Dr Pete Calveley, chief executive officer of Barchester, added: “Through our strategic partnership with Welltower and their significant and ongoing investment into their operating platform, we expect to continue to meaningfully enhance the lives of thousands of older adults by delivering not only exceptional care but also fostering environments rich in social and cognitive engagement.
“By prioritising safety, connection, and activity, we’re supporting better long-term health outcomes and consistently high resident satisfaction – hallmarks of a superior living experience.”
Welltower financed the acquisition through a combination of debt and capital recycling, as part of a broader $23 billion investment and divestment programme announced in October 2025. The company said its focus on seniors housing will rise to around 85% of total net operating income as it continues to rebalance its global portfolio.
Founded in 1992 by Mike Parsons, Barchester employs more than 16,000 people across the UK. The management team will remain in place following the transaction, which strengthens Barchester’s development pipeline and positions it for further expansion under Welltower’s ownership.
Author: Jason Mitchell, Real Asset Insight