National Health Investors (NYSE: NHI) today completed the previously announced purchase of 25 former Holiday Retirement properties from Holiday Acquisition Holdings for a total of $491 million plus transaction costs.
NHI initially announced the acquisition in November, following an announcement by Newcastle Investment Corp. (NYSE: NCT) that it would acquire a 52-property portfolio of senior housing communities from Holiday Retirement affiliates for approximately $1.01 billion.
The 25 properties are independent living communities located in Arkansas, California, Georgia, Idaho, Indiana, Louisiana, New Jersey, Ohio, Oklahoma, Oregon, South Carolina and Washington. Holiday affiliates will continue to operate the properties under a new 17-year master lease.
The purchase contribute to the REIT’s growth in 2014, its chief executive said following the completion of the sale.
“The acquisition of these 25 independent living communities provides substantial geographic, asset class and operator diversification on a very accretive basis,” said NHI President and CEO Justin Hutchens. “We were able to conservatively fund the acquisition with strong execution on the equity offering and better-than-expected pricing on our new term loan tranche. These transactions will be instrumental in supporting our growth in 2014.”
Written by Elizabeth Ecker