Health Care REIT Inc., the largest U.S. health-care landlord by market value, agreed to buy HealthLease Properties Real Estate Investment Trust and formed a partnership for additional properties to expand in senior care.
Health Care REIT will pay C$14.20 a share in cash for HealthLease, 31 percent more than the Toronto-based REIT’s closing stock price yesterday. The transaction is valued at $950 million, including debt, the companies said in separate statements today.
Toledo, Ohio-based Health Care REIT also agreed to acquire 17 rehabilitation communities under development by Mainstreet Property Group, the company that formed HealthLease in 2012, and entered a development deal that includes gaining purchase rights to 45 other projects.
Real estate companies are seeking to take advantage of the growing demand for medical services and senior housing as the U.S. population ages. Last week, NorthStar Realty Finance Corp. agreed to buy Griffin-American Healthcare REIT II for about $3.4 billion. In June, Ventas Inc., the country’s third-biggest health-care REIT by market value, said it would acquire American Realty Capital Healthcare Trust Inc. for $2.6 billion.
Health Care REIT’s purchase demonstrates the company’s “integral role in the health-care delivery continuum,” Chief Executive Officer Tom DeRosa said in a statement. “We are connecting leading health systems, post-acute providers and seniors-housing operators to deliver integrated health-care delivery platforms that will improve the quality of care, create operating efficiencies and reduce costs.”
HealthLease rose 31 percent to C$14.21. Health Care REIT climbed 2.3 percent to $64.95.
HealthLease has 53 senior-housing and health-care properties concentrated in North Carolina, Indiana and Alberta, Canada. The 17 communities Health Care REIT is acquiring in the Mainstreet deal are under the Next Generation brand and include a mix of post-acute and assisted-living beds and rehabilitation space. They are located primarily in the Indianapolis, Denver and Kansas City, Missouri, metropolitan areas.
The transaction with Mainstreet will be completed in phases, beginning in the fourth quarter, Health Care REIT said. The company expects the HealthLease acquisition to close by the end of the year.