NASHVILLE, TN—Locally-based Brookdale SeniorLiving and Irvine, CA-based HCP, Inc.report they have closed on their previously disclosedmultiple-faceted transaction that includes the creation of a$1.2-billion strategic joint venture.

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The joint venture initially owns a portfolio of 14 entry feeContinuing Care Retirement Communities. Thetransactions also involve amendments to the triple-net leases on202 HCP-owned senior housing communities formerly operated byEmeritus Corp., which was acquired by Brookdale in July 2014.

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As previously announced, concurrent with the closing, HCPinvested $324 million of cash into the CCRC joint venture, whichwas used to acquire four communities representing four of the 14campuses that initially constitute the venture. Brookdale willcontinue to manage the communities in the CCRC portfolio.

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Brookdale CEO Andy Smith says, “We are veryexcited about broadening our relationship with HCP through both themerger with Emeritus and this transaction, which creates attractiveopportunities to build shareholder value for Brookdale and HCP.Working together, we expect the entry fee CCRC joint venture tobecome a pre-eminent owner and operator of first-class entry-feecommunities. In addition, the modifications to the Emeritus leases,including the creation of a 49-community RIDEA joint venture, areexpected to improve the benefits of our merger by increasingaccretion and reducing lease leverage.”

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“I would like to congratulate the Brookdale and Emeritus teamsagain for completing their transformational merger,” saidLauralee Martin, president and CEO of HCP.“Brookdale has been a terrific long-term partner to HCP, and we aredelighted to have strengthened and expanded our relationship withthis best-in-class operator. This transaction results in improvedlease coverage, the elimination of purchase options and two newjoint venture platforms with significant growth potential.”

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John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.