Health Care REIT, Inc. (NYSE:HCN) has completed the formation of its $890 million partnership with Benchmark Senior Living.
Announced in February 2011, the partnership includes 34 high quality private pay senior housing communities with an $890 million investment balance that closed effective March 28.
“The Benchmark Senior Living transaction underscores Health Care REIT’s ability to execute its relationship investment strategy,” said George L. Chapman, Health Care REIT’s Chairman, Chief Executive Officer and President. “This strategy has resulted in an unprecedented $6.9 billion in gross investments announced in 2010 and 2011 with regionally dominant operators who have a track record of quality care, profitability and growth. This RIDEA partnership positions Health Care REIT for strong organic and external growth through Benchmark’s future NOI growth and the right to fund certain future real estate investments pursued by Benchmark.”
The RIDEA structure puts Health Care REIT’s ownership at 95% and Benchmark at 5%. Under the agreement, Benchmark will continue to provide management services to the communities under an incentive based management contract.
“The communities have an average age of twelve years and produce rental rates and occupancy in excess of industry averages, reflecting the best-in-class nature of the operations, locations and physical plants,” said a statement from Health Care REIT.
The portfolio includes 3,009 units, with 61% being part of assisted living, 34% dedicated to memory care, and 5% for independent living.
For more information on the partnership, see here.