Two heavy-hitting investment firms are expanding their footprint in the post-acute care sector through the acquisition of 14 skilled nursing facilities in the mid-Atlantic for about $150 million in total.
The deal reflects a multi-year strategic partnership between healthcare-focused private investment firm Formation Capital and global principal investment firm Safanad.
The portfolio includes 1,658 beds with 11 facilities in Virginia, two in Maryland and one in Pennsylvania, and is operated by Consulate Health Care, the sixth largest provider of skilled nursing care.
“This transaction […] gives us an opportunity to leverage our healthcare and operating expertise as well as strengthen our relationship with a best in class operator,” said Arnold Whitman, chairman of Formation Capital, in a news release.
The acquisition follows Formation Capital and Safanad’s acquisition of a 36-property senior housing portfolio for about $400 million in July of last year.
That portfolio has a footprint in 13 states and contains more than 2,600 units. About 65% of the units are assisted living, while 18% are independent living and the remaining 16% are memory care.
“We continue to explore investment opportunities in the healthcare real estate sector,” said Vincent Pica, managing partner and president of Safanad Inc., the U.S. subsidiary of Safanad Ltd.
In September 2012, Formation Capital and Safanad acquired a 68-property skilled nursing portfolio for $750 million. In 2011, the two entities acquired 36 senior care facilities in three separate deals.
Since 1999, Formation Capital has overseen the investment of more than $5.5 billion of capital in seniors housing and care, post-acute services and health care real estate. Safanad invests in real estate, private equity and public markets.
Written by Cassandra Dowell