(Corrects company paying rent in sixth paragraph.)
A Blackstone Group LP (BX:US) fund and Emeritus Corp. (ESC:US) agreed to sell a group of senior housing properties to HCP Inc. (HCP:US) for $1.73 billion, the largest deal for a health-care real estate investment trust this year.
Blackstone Real Estate Partners VI bought the 133-property portfolio out of bankruptcy in 2010, HCP said in a statement today. The Long Beach, California-based company, the largest health-care REIT by market value, said the purchase will add 8 cents a share to its annual funds from operations.
Demand for senior housing is rising as the U.S. population ages. Health Care REIT Inc. (HCN:US) agreed in August to pay an 87 percent premium for Sunrise Senior Living Inc. (SRZ:US), the biggest ever for an operator of homes for the elderly. U.S. health-care REITs have announced or completed $4.6 billion in acquisitions this year, according to data compiled by Bloomberg.
The HCP transaction “significantly expands our senior- housing portfolio,” Chairman and Chief Executive Officer Jay Flaherty said in today’s statement.
HCP’s planned purchase will be the largest acquisition by a health-care REIT acquisition since Toledo, Ohio-based Health Care REIT bought almost all the real estate owned by closely held Genesis HealthCare for $2.4 billion in April 2011.
Emeritus, a Seattle-based operator of assisted-living communities, will lease the properties from HCP and continue to operate them, according to the statement. Emeritus will pay $105.5 million in rent in the first year of the lease, the company said in a separate statement. Emeritus will also purchase nine other properties from the Blackstone venture.
HCP said it expects to complete its purchase in phases beginning in November.
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