CNL Healthcare Properties’ board of directors has appointed a special committee to evaluate strategic alternatives to provide liquidity to shareholders—including a possible sale of the company.
Those alternatives may include listing the company’s common stock on a national exchange, selling the company or its assets, or seeking a merger or other deal with another company, CNL announced Tuesday afternoon. The special committee tapped real estate investment banking groups HFF Securities L.P. and KeyBanc Capital Markets Inc. to act as advisors in exploring and executing the strategic alternatives.
The Orlando, Florida-based non-traded real estate investment trust (REIT), which is sponsored by private investment management firm CNL Financial Group, has a real estate portfolio that spans 34 states and includes 72 senior housing communities. The REIT made its first investment in early 2012 after launching in the previous year.
“We welcome the expertise of HFF and KeyBanc as we continue our focused work to evaluate strategic alternatives to provide liquidity to our shareholders,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties, in a statement.
The move to explore strategic alternatives comes less than a year after CNL touted year-over-year occupancy and revenue increases at its seniors housing communities. As of March 31, CNL had invested approximately $3.02 billion into its entire portfolio.
A representative for CNL Healthcare Properties declined to comment further when reached by Senior Housing News this afternoon.
Written by Tim Regan