HCP Closes Acquisition of $1.7 Billion Senior Housing Portfolio
HCP (NYSE: HCP) closed the acquisition of 127 of the 133 senior housing communities which HCP previously announced that it would acquire from a joint venture between Emeritus Corporation (“Emeritus”) (NYSE: ESC) and Blackstone Real Estate Partners VI, an affiliate of Blackstone (the “Blackstone JV”). As part of this acquisition, HCP entered into triple-net master leases with Emeritus, the nation's largest assisted living and memory care operator, who will continue to operate the communities. HCP expects to close the remaining six communities during the fourth quarter after receipt of applicable third party consents.
Concurrent with the closing, Emeritus purchased the nine remaining properties from the Blackstone JV, for which HCP provided secured debt financing totaling $52 million.
“We are delighted to significantly expand our relationship with Emeritus, a best-in-class operator, with this strategic transaction,” said Jay Flaherty, HCP's Chairman and Chief Executive Officer. “Congratulations go out to the Emeritus, Blackstone and HCP teams and to Chicago Title for their extraordinary, diligent and cooperative efforts that enabled us to close a transaction of this size within two weeks of announcement,” Mr. Flaherty added.
HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests primarily in real estate serving the healthcare industry in the United States. The Company's portfolio of assets is diversified among five distinct sectors: senior housing, post-acute/skilled nursing, life science, medical office and hospitals. A publicly traded company since 1985, HCP: (i) was the first healthcare REIT selected to the S&P 500 index; (ii) has increased its dividend per share for 27 consecutive years; and (iii) is the only REIT included in the S&P 500 Dividend Aristocrats index. For more information regarding HCP, visit the Company's website at www.hcpi.com.
Timothy M. Schoen
Executive Vice President - Chief Financial Officer