Griffin-American Completes $472 Million Senior Housing Portfolio Buy

Griffin-American Healthcare REIT II, Inc. announced Thursday the completion of its $472.2 million (£298.5 million) acquisition of a 44-property senior housing portfolio located throughout the United Kingdom. 

The transaction was announced in July for $447.8 million, but a change in dollar-to-pound conversion rates increased the cost at closing by $24.4 million even though the purchase price of the portfolio remained the same.

The UK senior housing portfolio is concentrated in England’s affluent South East region, says the REIT, primarily in the Home Counties around Greater London with additional locations near Birmingham, Bristol, and Oxford. 

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Other properties are located in affluent areas north of Edinburgh, in Scotland, with two more located in Jersey. 

In 2012, around 52% of the portfolio’s total revenue came from private pay residents. 

“With the completion of this acquisition, Griffin-American Healthcare REIT II has added a significant international presence to our already extensive national footprint,” said Jeff Hanson, chairman and CEO, in a statement.  “Griffin-American Healthcare REIT II is now one of the best diversified healthcare REITs in the country in terms of geography, revenue sources and asset types with a portfolio valued at approximately $2.1 billion, based on aggregate acquisition price.”

The portfolio is leased to Myriad Healthcare Limited, operating as Caring Homes, under 35-year net leases with annual rent escalations. 

“This is a transformational event for our company with a partner as committed to growth in the private pay market as we are,” said Paul Jeffery, CEO of Myriad Healthcare Limited. “This partnership allows us to continue to execute this strategy and expand our footprint in the UK’s growing private pay elderly care sector.”

Griffin-American Healthcare REIT II financed the acquisition using cash on hand. 

Written by Alyssa Gerace

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