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

The joint venture initially owns a portfolio of 14 entry fee Continuing Care Retirement Communities. The transactions also involve amendments to the triple-net leases on 202 HCP-owned senior housing communities formerly operated by Emeritus Corp., which was acquired by Brookdale in July 2014.

As previously announced, concurrent with the closing, HCP invested $324 million of cash into the CCRC joint venture, which was used to acquire four communities representing four of the 14 campuses that initially constitute the venture. Brookdale will continue to manage the communities in the CCRC portfolio.

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

“I would like to congratulate the Brookdale and Emeritus teams again for completing their transformational merger,” said Lauralee Martin, president and CEO of HCP. “Brookdale has been a terrific long-term partner to HCP, and we are delighted to have strengthened and expanded our relationship with this best-in-class operator. This transaction results in improved lease coverage, the elimination of purchase options and two new joint venture platforms with significant growth potential.”