Apollo Rumored to Buy $428 Million Brookdale Portfolio from HCP

Apollo Global Management LLC (NYSE: APO) is under contract to acquire a 22-property Brookdale Senior Living (NYSE: BKD) portfolio from HCP, Inc. (NYSE: HCP) for $428 million, Bloomberg reported on Friday, citing an anonymous source with knowledge of the matter.

Apollo, a New York City-based alternative investment management firm, currently has about $247 billion worth of assets under management around the world.

On June 5, Irvine, California-based real estate investment trust (REIT) HCP announced it had entered into definitive agreements to sell a portfolio of 22 Brookdale senior housing communities with 2,781 units to an institutional investor. The deal was anticipated to close in the third quarter of this year.

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HCP had not returned Senior Housing News’ request for comment as of press time. Brookdale Senior Living and Apollo Global Management declined to comment.

HCP has been striving to reduce its exposure to Brentwood, Tennessee-based Brookdale for several quarters.

HCP was left highly exposed to Brookdale after it spun off its large portfolio of HCP ManorCare skilled nursing properties into a new REIT, Quality Care Properties (NYSE: QCP), in 2016. Brentwood, Tennessee-based Brookdale, the nation’s largest senior living company, is trying to execute a turnaround, as its share price has slid and operational challenges have mounted in the past three years.

The REIT closed $1.6 billion worth of Brookdale dispositions in 2017, and in the first quarter of this year, the company completed the $275 million sale of six properties to Brookdale. Additionally, HCP announced a deal in March to transition management of 24 senior housing communities owned by HCP from Brookdale to Louisville, Kentucky-based Atria Senior Living.

The REIT also transitioned one Brookdale community to Orlando, Florida-based operator Sonata Senior Living in the first quarter of 2018.

Written by Mary Kate Nelson

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