Senior Housing REIT CNL Expected to Launch Second Offering in January

CNL Healthcare Properties, a real estate investment trust (REIT) focused on senior housing and health care facilities, announced recently that the anticipated completion date for its initial public offering (IPO) will be on or close to Jan. 30, 2015.

As of June 30, 2014, CNL Healthcare Properties received approximately $758 million in gross offering proceeds.

The REIT has filed a registration statement for a follow-on offering of shares of common stock with the U.S. Securities and Exchange Commission (SEC). The statement has not yet become effective, but the company expects to begin the follow-on offering upon completion of its IPO.

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CNL Healthcare Properties is a non-listed REIT, which means that while it is a public company, it is not listed on an open exchange. The second offering will also be non-listed and not available on an open exchange.

CNL began investing in senior housing a few years ago, and has been particularly active in the space within the past year. Since last year, the REIT has snatched up more than $1 billion in properties.

In October 2013, the REIT announced it entered into an agreement to acquire a 21-property Bonaventure portfolio located across the Pacific Northwest for $457.3 million, its largest single acquisition.

Notable acquisitions this year include February’s four-property deal in Washington for $88.3 million, and July’s nine-property expansion for $225 million.

Additionally, in May, CNL announced it had increased its original credit line from $120 million to $275 million, with the option to access additional capacity up to $325 million via an accordion feature.

Editor’s note: This story has been updated to reflect corrections. Previously, the headline stated “Senior Housing REIT CNL to go Public in January.” SHN regrets this error. 

Written by Emily Study

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