Search
 

Emeritus, HCP to Buy Senior Portfolio for $1B

SEATTLE-The companies will acquire 142 senior-housing communities from a joint venture that includes Emeritus, which will continue to operate most of the communities.

By Carrie Rossenfeld | Updated on October 17, 2012

SEATTLE-Emeritus Corp. and HCP Inc. have agreed to purchase 142 senior housing communities owned by a joint venture composed of Emeritus, Blackstone Real Estate Partners, certain former tenants-in-common and an investment fund affiliated with Dan Baty, Emeritus’ chairman. Emeritus owns a roughly 6% interest in the Blackstone joint venture and has been operating the communities since 2010 under management agreements for a fee equal to 5% of collected revenues. GlobeSt.com was unable to reach the parties before deadline to determine where the communities being sold are located or any other unifying features.

Once the transaction is consummated, HCP will acquire 133 of the communities for an aggregate purchase price of $1.7 billion consisting of cash and the assumption of existing debt. Emeritus will receive cash of approximately $140 million, consisting of approximately $40 million for the firm’s interest in the Blackstone JV and an incentive payment of approximately $100 million based on the final rate of return to the Blackstone JV’s investors. The final closings for these transactions are expected to be completed in the fourth quarter of this year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.