CNL to Launch $2 Billion Offering on New Health Care REIT

A new health care real estate investment trust (REIT) from private investment management firm CNL Financial Group has been declared effective by the Securities and Exchange Commission (SEC). The new REIT, CNL Healthcare Properties II, can begin its initial public offering stock of up to $2 billion in common stock.

CNL Healthcare Properties II, based in Orlando, Florida will offer three classes of shares, ranging from $10 to $11.08 per share in a publicly registered, non-traded offering, according to a press release. Of the $2 billion offering, $250 million in stock will be available through the distribution reinvestment plan.

The offering will make similar investments in senior housing and health care assets to CNL Healthcare Properties, a non-traded REIT that closed to investors in 2015 with more than $3 billion in assets under its management. That REIT from CNL Financial Group doubled in size last year. After raising more than $1.1 billion in its initial offering, CNL Healthcare Properties doubled down to increase its equity to acquire and develop senior housing, medical office buildings, acute and post-acute assets.

“CNL Properties II plans to use offering proceeds to acquire and manage a diversified portfolio of real estate properties, primarily in the seniors housing, medical office, acute care and post-acute care markets, and intends to include stabilized, value add and development properties, as well as other income-producing real estate and real estate-related securities and loans,” a release reads.

Written by Amy Baxter