LONDON—California-based HCP says that it is the lead investor in the financing for Formation Capital and Safanad's pending acquisition of NHP, a company that owns 273 nursing and residential care homes representing over 12,500 beds in the UK.

HCP will provide a loan facility totaling about $630 million (£394.5M), secured by substantially all of NHP's assets with a five–year term.

“We are pleased to partner with Formation Capital and Safanad to finance its acquisition of NHP,” said Lauralee Martin, president and CEO of HCP. “Formation has been a valuable partner to HCP, having collaborated on past transactions including our Genesis and Tandem debt investments, as well as several Senior Housing development projects. Further, this accretive transaction allows us to expand our UK investments to approximately $1 billion and provides a new relationship with a premier national operator in the UK led by Dr. Chai Patel and his talented management team.”

The facility includes $579 million (£362.5M) funded at closing, representing a portion of the $762 million (£477M) acquisition consideration; in addition, HCP will make available up to $51 million (£32M) to fund future capital improvements in properties operated by HC-One. Including fees received at closing, the facility is projected to achieve a blended 8.2% yield–to–maturity, representing an immediately accretive investment that increases HCP's annualized FFO and FAD run-rate by $0.03 per share.

The NHP portfolio is anchored by 226 care homes, the majority of which are purpose–built, primarily located in England and Scotland. These facilities are operated by HC–One, an NHP subsidiary launched in November 2011 to assume the operations transitioned from Southern Cross Healthcare. HC–One is the UK's third largest nursing and residential care provider with an experienced management team led by Chai Patel, and cares for over 10,000 residents by offering a wide range of services including dementia, nursing, residential and specialist care. The remaining NHP facilities are leased to third–party operators including Four Seasons Health Care and Care Management Group. Currently NHP's portfolio has an occupancy rate of over 88%.

The closing of the acquisition and funding of the facility is expected to occur this month, subject to customary closing conditions.

HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests primarily in real estate serving the healthcare industry in the United States. HCP's portfolio of assets is diversified among five distinct sectors: senior housing, post-acute/skilled nursing, life science, medical office and hospitals.