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.
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.
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