American Healthcare REIT (NYSE: AHR) on Tuesday announced it has exercised a purchase option to acquire the remaining 24% ownership stake of Trilogy Health Services.
Trilogy acquired the minority stake from its joint-venture partner, an affiliate of NorthStar Healthcare Income. The amount that changed hands with the transaction was $258 million, according to a press release.
“We are excited to have completed the acquisition of our joint venture partner’s 24% minority membership interest in Trilogy Holdings,” Danny Prosky, American Healthcare REIT’s president and CEO, said in a press release. “Additionally, we paid down existing outstanding indebtedness on our lines of credit with the remaining net proceeds from our recent common stock offering, which we believe will result in further accretion and borrowing capacity.”
A representative for American Healthcare REIT was not immediately available to comment on the transaction.
Trilogy manages 128 communities for American Healthcare REIT, according to the company’s most recent financial disclosures.
Prosky previously said that Trilogy represents the real estate investment trust’s (REIT) “best risk-adjusted return.”
American Healthcare REIT is in the process of expanding Trilogy Health Services through five new independent living villas under development and a new campus in Michigan and as of August maintained an occupancy rate of 84%.
“We look forward to the potential future growth opportunities we will be able to access with the completion of this transaction,” Prosky said in the release.
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