LONG BEACH, CA-Health Care Property Investors and an unnamed institutional partner have created a $1.1 billion joint venture fund to recapitalize 25 senior housing facilities that the Long Beach-based REIT acquired as part of its October acquisition of CNL Retirement Properties Inc. The deal gives HCPI a 35% interest in the venture while the REIT will continue to manage the assets.
Through a combination of approximately $280 million from the institutional capital partner and $446 million from a recently expanded debt facility with Fannie Mae, HCPI comes up with total gross proceeds of approximately $726 million in the deal. It will apply the funds to repay debt.
The HCPI debt facility with Fannie Mae, which the REIT has recently expanded, now totals $687 million and encumbers all 25 assets in the joint venture. The debt is fixed rate at a weighted average of 5.66%.
The joint venture marks the latest in a series of acquisitions and financial moves for Health Care Property Investors, which in December sealed deals of $443.5 million and $141 million, which in turn followed its $5.3 billion acquisition of CNL in October. The deals closed in December included the $443.5 million sale of a portfolio of 78 skilled nursing facilities and the $141 million acquisition of GE's interest in a medical office portfolio.
In the $141 million transaction, HCPI acquired its partner's interest in the medical office portfolio from an affiliate of General Electric Co. HCPI and GE formed the joint venture in 2003 to acquire the portfolio.
The Health Care Property Investors portfolio included 801 properties as of Nov. 6. That total included 333 senior housing facilities, 265 medical office buildings, 30 hospitals, 144 skilled nursing facilities and 29 other healthcare facilities.
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