Health Care REIT announced this week that it had signed a definitive agreement to acquire substantially all of Genesis HealthCare's real estate assets for $2.4 billion according to a New York Times article. Health Care REIT will acquire 147 facilities located in 11 states in the Northeast and Mid-Atlantic; under the terms of the deal, Genesis will lease the properties from Health Care REIT and continue to operate all facilities under a 15-year initial term. The acquisition is expected to close during the 2nd quarter of 2011. The long-term triple-net lease with Genesis will provide for rent in the first year of $198 million with an initial cash yield of 8.25%. Additionally, Health Care REIT will have an option to buy a 9.9% stake in Genesis for $47 million.
"We believe this transaction allows for Genesis HealthCare to significantly expand its premiere post-acute healthcare delivery system and infrastructure," said Arnold M. Whitman, Co-Chairman of Genesis. "We look forward to this next phase in Genesis' future as we work together with Health Care REIT to build a truly exceptional company in this changing health care environment," added Steven E. Fishman, Co-Chairman of Genesis.
For more news and information visit Blumberg Capital Partners.
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