Senior Housing Properties Trust Announces Joint Venture to Own Buildings in Boston’s Seaport District
March 27 2017 - 8:00AM
Business Wire
Senior Housing Properties Trust (Nasdaq: SNH) today announced
that it has formed a joint venture with a sovereign institutional
investor to own 11 Fan Pier and 50 Northern Avenue in Boston, MA.
The investor will contribute approximately $261 million for a 45%
equity interest in the new venture, and SNH will own the remaining
55% equity interest. The investment amount is based on a property
valuation of $1.2 billion, less $620 million of existing secured
debt on the property.
The property included in the joint venture was acquired by SNH
in May 2014 for $1.125 billion and consists of two 15 story, class
A LEED® Gold Certified life-science buildings with structured
parking located in Boston’s Seaport District. The two buildings are
95% leased to Vertex Pharmaceuticals, Inc. through 2028 and include
1.1 million rentable square feet of lab, corporate office and
street level retail space.
SNH expects to use the cash proceeds from this transaction to
repay a portion of the amounts outstanding under its revolving
credit facility.
David Hegarty, President and Chief Operating Officer of SNH,
made the following statement about today’s announcement:
“We are pleased to announce SNH’s first joint
venture transaction to own property. This transaction highlights
the increased value of these two well located, well leased
buildings since we acquired them less than three years ago. This
transaction also reduces our investment portfolio’s concentration
in this property and reduces our overall leverage.”
SNH will continue to control this property because its partner
in this joint venture is a passive financial investor. Accordingly,
SNH expects to consolidate the operating results of this venture in
its financial statements and expects to account for the investor’s
minority equity interest in the venture as a non-controlling
interest for financial reporting purposes. SNH is also subject to a
confidentiality agreement and cannot disclose the identity of the
investor that formed this joint venture with SNH.
Eastdil Secured acted as SNH’s advisor and Sullivan &
Worcester LLP provided legal counsel to SNH in this
transaction.
Senior Housing Properties Trust is a real estate investment
trust, or REIT, which owns senior living communities, medical
office buildings and wellness centers throughout the United States.
SNH is managed by the operating subsidiary of The RMR Group Inc.
(Nasdaq: RMR), an alternative asset management company that is
headquartered in Newton, MA.
WARNING CONCERNING
FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD
LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO,
WHENEVER SNH USES WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”,
“INTEND”, “PLAN”, “ESTIMATE”, "WILL", “MAY” AND NEGATIVES OR
DERIVATIVES OF THESE OR SIMILAR EXPRESSIONS, SNH IS MAKING FORWARD
LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON
SNH’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING
STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR.
ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN
OR IMPLIED BY SNH’S FORWARD LOOKING STATEMENTS AS A RESULT OF
VARIOUS FACTORS. FOR EXAMPLE, MR. HEGARTY STATES THAT THIS
TRANSACTION REDUCES SNH’S OVERALL LEVERAGE, WHICH MAY IMPLY THAT
SNH’S LEVERAGE WILL BE SUSTAINED AT THIS REDUCED LEVEL. HOWEVER,
SNH HAS A REVOLVING CREDIT FACILITY UNDER WHICH IT MAY BORROW,
REPAY AND REBORROW AMOUNTS AND IT MAY SEEK TO INCUR ADDITIONAL
SOURCES OF INDEBTEDNESS IN THE FUTURE. AS SUCH, SNH MAY NOT SUSTAIN
ITS REDUCED LEVERAGE AND ITS LEVERAGE MAY INCREASE IN THE
FUTURE.
THE INFORMATION CONTAINED IN SNH’S FILINGS WITH THE SECURITIES
AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER “RISK
FACTORS” IN SNH’S PERIODIC REPORTS, OR INCORPORATED
THEREIN, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE
SNH’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE STATED IN OR
IMPLIED BY SNH’S FORWARD LOOKING STATEMENTS. SNH’S FILINGS WITH THE
SEC ARE AVAILABLE ON THE SEC’S WEBSITE AT WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING
STATEMENTS.
EXCEPT AS REQUIRED BY LAW, SNH DOES NOT INTEND TO UPDATE OR
CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW
INFORMATION, FUTURE EVENTS OR OTHERWISE.
A Maryland Real Estate Investment Trust with
transferable shares of beneficial interest listed on the Nasdaq.No
shareholder, Trustee or officer is personally liable for any act or
obligation of the Trust.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170327005147/en/
Senior Housing Properties TrustBrad Shepherd,
617-796-8234Director, Investor Relations
Senior Housing Properties (NASDAQ:SNH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Senior Housing Properties (NASDAQ:SNH)
Historical Stock Chart
From Jul 2023 to Jul 2024