Formation Capital Partners with Global Investor to Acquire SNF Portfolio for $750 Million

Senior housing and skilled nursing investor and asset manager Formation Capital recently partnered with global investment house Safanad to acquire one of the United States’ largest standalone skilled nursing portfolios for $750 million. The properties are located in East Coast states and are leased to a top-ten operator.

The 68-property portfolio transaction represents the second time Formation and Safanad have joined forces in real estate acquisitions; in 2011, the two entities acquired 36 senior care facilities in three separate deals. The investment partnership now jointly owns more than $1 billion worth of senior care assets in the U.S.

Equity for the $750 million deal came from a variety of sources including existing investors in the portfolio; follow-on investors from the two companies’ first partnership; and new investors from both the U.S. and the Gulf.

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“This acquisition is a great example of how this partnership is identifying and unlocking value in a very specialist sector at a particular stage in its investment cycle,” said Ahmed Farid, president of Safanad, in a statement. “We will be looking to create value for our co-investors and security for our clients by structuring these businesses to mitigate operational risks and provide solid returns.”

Written by Alyssa Gerace

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