TOLEDO, OHIO—Another day, another acquisition in the health carereal estate industry.
Health Care REIT announced Wednesday morning ithad entered into an agreement to acquire Canadian-basedHealthLease Properties REIT in a cash deal valuedat $950 million, including the assumption of debt.HealthLease's portfolio includes 53 high-quality seniors housing,post-acute care and long-term care communities.
Health Care REIT has also agreed to acquire 17 acute carecommunities under construction from MainstreetProperty, which manages HealthLease, for an additional$369 million. The two related transactions willadd about 100 properties to Health Care REIT's portfolio andpositions it for further expansion as it has also acquired theright to another 45 development projects by Mainstreet. Theseso-called "next generation" projects are valued at about $1billion with a 7.7% initial cash yield and managed underlong-term triple-net lease agreements. This portfolio is expectedto close in tranches when construction is completed starting in2016 through the first quarter of the following year.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
