NASHVILLE—Brookdale Senior Living and HCP Inc. said late Wednesday afternoon that they had created a new strategic joint venture valued at $1.2 billion. The JV will own and operate 14 entry-fee continuing care retirement communities.

Located mainly in Florida, the CCRC portfolio encompasses approximately 7,000 units across a diversified care mix consisting of 67% independent living, 18% skilled nursing, 11% assisted living and 4% memory care facilities. Brookdale and Long Beach, CA-based HCP will own 51% and 49%, respectively, of the CCRC JV based on each company’s respective contributions when the deal closes.

Brookdale will contribute eight of its owned campuses, as well as its leasehold rights including purchase options on three HCP-owned properties across two campuses. For its part, HCP will contribute those three properties leased to Brookdale and $334 million of cash, which will be used to acquire four additional entry-fee CCRCs currently managed by Brookdale. Brookdale will continue to manage all of the properties in the portfolio.

T. Andrew Smith, Brookdale’s CEO, calls the partnership “an industry-leading entry-fee CCRC joint venture.” He adds that combining HCP’s capital strengths with Brookdale’s operating platform forms “a compelling investment vehicle for our existing entry-fee CCRCs and provides for growth in this fragmented asset class.”

In addition, the two companies have agreed to amend leases on 202 HCP-owned senior housing communities now operated by Emeritus Corp. The closing of these transactions is conditioned upon the closing of the pending merger between Brookdale and Emeritus.