LONDON (MarketWatch) -- Healthcare real estate investment trust Ventas Inc. said Friday that it will buy substantially all of the real estate assets of privately-owned Atria Senior Living Group for $3.1 billion. The deal price comprises $1.35 billion in Ventas common stock, $150 million in cash and the assumption or repayment of $1.6 billion of net debt. Atria, the fourth-largest operator of assisted living properties in the U.S., is owned by private equity funds managed by Lazard Real Estate Partners.

Ventas said Atria will spin off its management company before the deal closes and will continue to operate the assets under a management contract. The deal is for 118 housing assets comprising around 13,500 individual units.