TOLEDO, OHIO—Another day, another acquisition in the health care real estate industry.
Health Care REIT announced Wednesday morning it had entered into an agreement to acquire Canadian-based HealthLease Properties REIT in a cash deal valued at $950 million, including the assumption of debt. HealthLease's portfolio includes 53 high-quality seniors housing, post-acute care and long-term care communities.
Health Care REIT has also agreed to acquire 17 acute care communities under construction from Mainstreet Property, which manages HealthLease, for an additional $369 million. The two related transactions will add about 100 properties to Health Care REIT's portfolio and positions it for further expansion as it has also acquired the right to another 45 development projects by Mainstreet. These so-called "next generation" projects are valued at about $1 billion with a 7.7% initial cash yield and managed under long-term triple-net lease agreements. This portfolio is expected to close in tranches when construction is completed starting in 2016 through the first quarter of the following year.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
