Welltower Inc. (NYSE: WELL) made a near $5 billion cash offer for Healthcare Realty Trust Inc. (NYSE: HR) that was ultimately rejected by the medical office REIT, according to a new report by the Wall Street Journal.
Though its initial bid was rejected, the Toledo, Ohio-based real estate investment trust (REIT) remains interested in a potential acquisition, according to the WSJ report. Still, the company may be unlikely to raise its bid, according to Jefferies analyst Jonathan Petersen.
A representative for Welltower was not immediately available to elaborate on the report when contacted by Senior Housing News.
Healthcare Realty Trust agreed to merge with Healthcare Trust of America Inc. (NYSE: HTA) in February, joining the REITs in an approximate $10 billion deal that included mostly stock options. The combined company would have 727 properties totaling 44 million square feet, making it the largest medical office REIT in the country.
About a month after the agreed merger was announced, Toledo, Ohio-based Welltower offered $31.75 per share for Healthcare Realty Trust in a deal that would total $4.8 billion, according to Wall Street Journal.
Welltower reportedly sought to finance the deal with cash and a fully-committed bridge loan, with the senior housing REIT offering to pay a $163 million termination fee Healthcare Realty would owe for walking away from the transaction with Healthcare Trust, the article states.
Healthcare Realty ultimately rejected the bid as its board found the offer was not as attractive as the potential merger, according to a filing cited by WSJ. Welltower’s offer was among others looked at by Healthcare Trust last year.
Welltower has since the fourth quarter of 2020 made about $7 billion in gross investments. The REIT also has acquired more than 29,000 senior living units in that time, representing an average investment of $20.6 million per property.