Genesis Healthcare (NYSE: GEN), one of the nation’s largest post-acute providers, announced Monday that the company has sold 18 of its assisted living assets located in Kansas. The financial terms of the sale and the buyer were not disclosed.
Kennett Square, Pennsylvania-based Genesis used the sale proceeds to repay $54.2 million of its existing bridge loan with real estate investment trust (REIT) Welltower, Inc. (NYSE: HCN), with the remainder of funds from the sale used to repay other debts, according to a news release. The Vintage Park portfolio includes 18 properties with 807 beds, 372 full- and part-time employees and aggregate revenue totaling approximately $22.7 million in 2014.
“Genesis acquired the Vintage Park Assisted Living assets in conjunction with the February 2015 Skilled Healthcare transaction,” Genesis CEO George V. Hager, Jr. said in a prepared statement. “Assisted living has never been our core competency, and we believe we can better allocate the capital by delevering our balance sheet.”
The transaction and Hager’s comment suggest Genesis is moving away from assisted living to focus more readily on skilled nursing and post-acute care. In June, the company announced the purchase of 24 of Revera Inc.’s skilled nursing facilities and its contract rehabilitation business for $240 million, beefing up its portfolio of more than 500 SNFs and assisted/senior living communities in 24 states nationwide.
Genesis also indicated its intent to become the post-acute provider of choice through significant participation in alternate payment models.
Genesis did not immediately respond to Senior Housing News’ request for more information on the 18-property divesture.
Written by Kourtney Liepelt