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HCP Sells Brookdale Assets, Spins SNF Portfolio

IRVINE, CA—Affiliates of a Blackstone fund will pay HCP $1.125 billion to acquire the 64 properties triple-net leased to Brookdale Senior Living, with Brookdale taking a minority stake.

By Paul Bubny | paulbubny | Updated on November 01, 2016

Mike McKee, CEO of HCP CEO Mike McKee says the Brookdale transactions represent “a key component of our plan to launch HCP 3.0”.

IRVINE, CA—HCP Inc. said Tuesday it had agreed to sell a portfolio of 64 communities triple-net leased to Brookdale Senior Living Inc. to affiliates of Blackstone Real Estate Partners VIII for $1.125 billion. Separately, the Irvine, CA-based healthcare REIT announced that it had completed the spin-off of its HCR ManorCare portfolio of skilled nursing and assisted living assets into a separate, publicly traded company. HCP plans to use proceeds from the Brookdale sale and financing of the spin-off to pare down debt.

Nashville-based Brookdale will take a 15% ownership stake in the portfolio via a joint venture with Blackstone. It will manage the 64 properties, which total 5,967 units, on behalf of the JV following completion of the sale by HCP. The sale to Blackstone is expected to close in the first quarter of 2017.

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