Healthcare real estate investment trust Ventas, Inc. (NYSE:VTR) announced on Monday that it has sold 12 senior housing communities to operator Assisted Living Concepts, Inc. (NYSE:ALC) for $100 million in cash.
ALC had been the tenant for these communities. Its leases with Ventas were terminated at the transaction closing, and the REIT no longer owns any assets that ALC operates.
With the lease termination, Ventas’s pending litigation against ALC for lease violation has been dismissed.
“Ventas stands for excellence in seniors housing. This transaction allows ALC’s new chief executive officer and its Board of Directors to focus their attention and resources on providing quality care for its residents,” Ventas Chairman and Chief Executive Officer Debra A. Cafaro said in a statement.
Ventas’s total annual base rent under its leases with ALC was about $7.2 million on a GAAP basis, and $6.6 million on a cash basis. The 12 communities sold to ALC had a total of 696 units in five states.
The transaction terms included ALC paying for Ventas’s expenses incurred from the lawsuit.
Written by Alyssa Gerace