Elder Law

Nation?s Largest Health Care Real Estate Investment Buys 338 Nursing Homes

By Levin & Perconti

Bloomberg News reported today on big news in the real estate world involving healthcare facilities and nursing homes. The country?s largest investment trust in healthcare real estate?HCP, Inc.?announced plans to buy 338 properties from Carlyle Group?s HCR ManorCare, Inc.

The REIT deal (real estate investment trust) is the largest in years, with the total sale worth $6.1 billion. That includes $3.5 billion in cash, $1.7 billion reinvested from existing debt, and $852 million in stock.

Many Illinois families are familiar with the sellers who operate hundreds of nursing homes under the ManorCare name. The 338 properties sold are all post-acute, nursing, and assisted-living facilities. The company operates properties in 30 states, including here in Illinois.

HCR ManorCare will continue to run the facilities under a long-term lease. The rents on the facilities will increase each year under the deal, and the buying company reserves an option of obtaining a 9.9% stake in the company.

An analyst explained that the CEO of HCP Inc. ?has long indicated an interest in investing in premier nursing-home assets, and ManorCare represents such an operator.?

Full post as published by Illinois Nursing Home Abuse Blog on December 14, 2010 (boomark / email).