Health Care REIT (NYSE: HCN) has closed its previously announced deal with Healthlease Properties REIT, the company stated Wednesday.
The deal includes the acquisition of HealthLease Properties REIT and its portfolio of seniors housing, post-acute care and long-term care commuities that are triple-net leased to operating partners.
Health Care REIT has also partnered with Mainstreet Property Group under an agreement for HCN to acquire a development pipeline of 17 of Mainstreet’s Next Generation communities for $369 million.
Also as previously announced, HCN has agreed to provide mezzanine financing and to receive purchase option rights for 45 additional Next Generation development projects—a pipeline valued at $1.0 billion.
“HCN has created a unique relationship network with leading health care providers and seniors housing operators,” said Tom DeRosa, HCN’s Chief Executive Officer, in a press release. “Our completion of the HealthLease acquisition and partnership with an innovative developer like Mainstreet, who is reinventing the post-acute care model through its Next Generation® prototype, are consistent with that strategy.”
Valued a total of $2.3 billion comprising the existing properties and development pipeline, the partnership in total has been touted as a revolutionary for its foray into a new post-acute care product that focuses on short-term stays, but also offers long-term care. This model departs from the traditional nursing home approach of providing a majority of long term care units with some short-term stay capacity.
Written by Elizabeth Ecker