Separately, Welltower and Genesis have also restructured two loans which the healthcare REIT had made to Geneis into four separate five-year loans. The loans have an outstanding principal balance of $317.0 million, or 60% of the original $531.1-million balance, and were scheduled to mature in 2017 and 2018. Genesis has repaid $214.1 million of these loans since the two loans were closed in 2015 and 2016. All four are cross-defaulted to one another as well as to the original Welltower master lease and are guaranteed in full by Genesis.

Genesis intends to pay off two of the four separate loans, totaling $74.8 million, through potential proceeds from HUD refinancing and asset sales. The remaining two loans, totaling $242.2 million, consist of a $103.6-million loan covering 13 facilities in Texas and a $138.6- million loan covering 18 facilities.

TOLEDO, OH—Welltower Inc. said Thursday afternoon it had completed the sale of 28 long-term/post-acute care facilities, master leased to Genesis Healthcare Inc., to a joint venture with Beijing-based Cindat Capital Management and Union Life Insurance Co. Ltd. First announced in early November, the deal will total $930 million when the sale of 11 seniors housing properties leased to Brookdale Senior Living Inc. is completed in the first quarter.

Cindat and Union Life will own a 75% interest in the JV, with Welltower retaining a 25% stake. Genesis will continue to operate the 28 properties under terms of a new master lease with the JV. Under the terms of the sale, Genesis has issued $23.7 million of notes payable to Welltower in exchange for reduced rent and lower annual lease escalators. For Genesis, this is expected to reduce its cumulative rent obligations by $143 million through January 2032.

When the JV was first announced, Cindat CEO Greg Peng commented on the “unique opportunity” it represented. “With aging demographics and U.S. healthcare trends driving the need for innovative health care infrastructure, we believe the sector represents an attractive long-term investment opportunity, Pen said in November. The deal represented Cindat's first investment in US healthcare real estate.

For Welltower, the JV and other dispositions represents a key component of its strategy to reposition its portfolio. “This repositioning will strengthen our focus on premium private-pay health care real estate, reinforce our industry-leading balance sheet strength and enhance our operating and financial performance,” Tom DeRosa, CEO of Welltower, said in November. In all, Welltower expects to execute on $3.3 billion in disposition proceeds during the fourth quarter.

Separately, Welltower and Genesis have also restructured two loans which the healthcare REIT had made to Geneis into four separate five-year loans. The loans have an outstanding principal balance of $317.0 million, or 60% of the original $531.1-million balance, and were scheduled to mature in 2017 and 2018. Genesis has repaid $214.1 million of these loans since the two loans were closed in 2015 and 2016. All four are cross-defaulted to one another as well as to the original Welltower master lease and are guaranteed in full by Genesis.

Genesis intends to pay off two of the four separate loans, totaling $74.8 million, through potential proceeds from HUD refinancing and asset sales. The remaining two loans, totaling $242.2 million, consist of a $103.6-million loan covering 13 facilities in Texas and a $138.6- million loan covering 18 facilities.