Gazit-Globe, a leading multi-national real estate company, announced last week that its private subsidiary, Royal Senior Care, LLC and its members have completed a transaction to sell the majority share of its wholly-owned senior housing communities.
Gazit Senior Care, Inc., a private subsidiary fully-owned by Gazit-Globe, holds a 60% interest in Royal Senior Care, LLC, which is active in the senior housing field in the United States.
The senior housing properties have a total of 1,310 units and are being sold for a total gross consideration, before debt and transaction costs, of $230 million (USD), for an average $175,500 (USD) per unit; Gazit-Globe’s portion will be $138 million (USD).
Royal Senior Care will continue to own and manage its joint venture interest in two senior housing facilities, one fully-owned senior housing community, and a tract of land slated for future development.
Gazit-Globe will record a gain of approximately $18 million (USD) as a result of the transaction, with net proceeds of approximately $70 million (USD).
“This transaction is a great achievement for our local team which shows the group’s ability to successfully acquire, manage, and develop properties and platforms, including within the health care real estate sector,” said Roni Soffer, president of Gazit-Globe, in a statement. “This transaction is another step in our strategy to focus management’s attention on our main business operations, to recycle capital to those operations, and to continuously enhance our corporate efficiency, all while we explore new opportunities in the global real estate markets.”
The company’s main focus is on acquisition, development and redevelopment of supermarket-anchored shopping centers.
Written by Alyssa Gerace