February 4, 2020
∴Brookdale Senior Living Inc. has announced the closing of the acquisition of an 18-community senior housing portfolio for $405 million. The properties were formerly leased from Healthpeak.
The acquisition supports the firm’s strategy to own a higher portion of its portfolio. As part of the transaction, Brookdale financed approximately $193 million of non-recourse mortgage debt for the communities. In addition, Brookdale and Healthpeak amended and restated the master lease for the remaining 24-leased communities, which improved lease coverage. The location of the properties was not disclosed.
Healthpeak also acquired Brookdale’s 51% equity interest in 14 unconsolidated entry fee CCRC communities. This generated more than $285 million in net cash proceeds and improved Brookdale’s leverage.
“I am delighted that we have completed this mutually beneficial transaction with Healthpeak, including the sale of our interest in the unconsolidated CCRC venture that was underappreciated in our stock valuation,” said Lucina Baier, CEO at Brookdale. “This transaction also reduces our lease exposure, improves our consolidated cash flow and increases our liquidity and financial strength. This set of transactions is another example of our ability to unlock significant value, while reducing the complexity of our business.”
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