HCN to Sell Life Science Portfolio Interest for $573.5 Million
May 04 2015 - 4:05PM
Business Wire
Projected Unlevered IRR of Approximately
15%
Health Care REIT, Inc. (NYSE:HCN) today announced it has
entered into a definitive agreement to sell its 49% interest in
seven life science buildings located at Massachusetts Institute of
Technology’s University Park, a mixed-use life science campus, in
Cambridge, MA. Forest City Enterprises, Inc. (NYSE:FCEA and FCEB)
will redeem HCN’s interest for $573.5 million, including HCN’s pro
rata share of property-level debt of $174 million. The purchase
price represents a projected 5% cap rate based on forward 12 months
net operating income.
“This was a terrific investment for HCN, achieving an unlevered
internal rate of return of approximately 15%. Forest City has been
an excellent partner, and we appreciate their role in our
successful partnership over the last five years,” said Tom DeRosa,
CEO of HCN. “The proceeds from this sale will be reinvested
accretively in our core business; owning, developing and managing
the highest quality seniors housing, post-acute and outpatient
medical real estate in the US, UK and Canada."
The two companies entered into a 51/49 equity joint venture for
the properties in February 2010. At that time, HCN invested $327
million, including assumed debt, for its 49% interest.
The disposition of the life science portfolio is incremental to
HCN’s most recently disclosed 2015 disposition guidance of $400
million and is expected to be completed during the second half of
2015. Additional information will be provided in HCN’s earnings
release and related conference call scheduled for Friday, May 8,
2015.
About Health Care REIT, Inc.
HCN, an S&P 500 company with headquarters in Toledo, Ohio,
is a real estate investment trust that invests across the full
spectrum of seniors housing and health care real estate. The
company also provides an extensive array of property management and
development services. As of December 31, 2014, the company’s
broadly diversified portfolio consisted of 1,328 properties in 46
states, the United Kingdom and Canada.
Forward-Looking Statements
This press release may contain “forward-looking” statements as
defined in the Private Securities Litigation Reform Act of 1995.
When the company uses words such as “may,” “will,” “intend,”
“should,” “believe,” “expect,” “anticipate,” “project,” “estimate”
or similar expressions that do not relate solely to historical
matters, it is making forward-looking statements. Forward-looking
statements are not guarantees of future performance and involve
risks and uncertainties that may cause the company’s actual results
to differ materially from the company’s expectations discussed in
the forward-looking statements. This may be a result of various
factors, including, but not limited to, the satisfaction of closing
conditions to the transaction; the respective parties’ performance
of their obligations under the transactions agreements; the failure
of the closing to occur as and when anticipated; unanticipated
difficulties and/or expenditures relating to the transaction; risks
related to non-compliance with government regulations and new
legislation or regulatory developments; changes in financing terms;
and other factors affecting the execution of the transaction.
Finally, the company undertakes no obligation to update or revise
publicly any forward-looking statements, whether because of new
information, future events or otherwise, or to update the reasons
why actual results could differ from those projected in any
forward-looking statements.
Health Care REIT, Inc.Scott Estes, 419-247-2800Scott Brinker,
419-247-2800
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