WSJ: NorthStar Realty Finance in Talks to Buy Griffin-American Healthcare REIT II

After months of rumors, Griffin-American Healthcare REIT II may soon have a new owner in NorthStar Realty Finance Corp. (NYSE:NRF), according to a report from The Wall Street Journal.

The cash-and-stock deal would value the real estate investment trust (REIT) at $3.5 billion to $3.7 billion, notes the WSJ, which cites two individuals familiar with the negotiations.

The deal is not final and could still fall apart, the sources said, but there is, however, a exclusivity period that ends this weekend, meaning if a deal is not reached by then, Griffin can begin talking to other interested bidders. 

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Speculations have swirled for months as to who might purchase the REIT, following a previous WSJ report that the sale of Griffin-American had sparked a bidding war among four heavy-hitting senior housing investors, including NorthStar, Health Care REIT (NYSE:HCN), Ventas (NYSE:VTR) and American Realty Capital Healthcare Trust.

The latter, American Realty Capital (ARC), had been rumored as the front-running bidder prior to its June acquisition by Ventas for approximately $2.6 billion in stock and cash.  

In May, Griffin-American’s independent board of directors entered into exclusive negotiations to sell the company to ARC Healthcare Trust for about $12.50 per share, according to the WSJ. Those talks, however, fell apart following the Ventas acquisition.

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Representing Griffin in the rumored sale to NorthStar is Bank of America Merrill Lynch’s healthcare banking group, WSJ stated.

Read the WSJ article.

Written by Jason Oliva

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