IRVINE, Calif., Nov. 1, 2016
IRVINE, Calif., Nov. 1, 2016 /PRNewswire/ -- HCP (NYSE:HCP) today announced that it has entered into definitive agreements to sell a portfolio of 64 properties leased to Brookdale Senior Living, Inc. ("Brookdale") for an aggregate sales price of $1.125 billion to affiliates of Blackstone Real Estate Partners VIII L.P. (collectively, "Blackstone"). HCP intends to use the proceeds primarily to pay down debt and for general corporate purposes. In addition, HCP and Brookdale have agreed to complete several other transactions, as outlined below. Combined, these transactions will advance our strategic priorities to reduce Brookdale concentration, improve lease coverage, diversify our operator relationships and strengthen our balance sheet and credit profile.
Overview of the Brookdale Transactions:
Mike McKee, Chairman of the Board, President and Chief Executive Officer of HCP, stated, "We are pleased to announce these transactions related to our Brookdale portfolio, as a key component of our plan to launch HCP 3.0 as outlined earlier in the year. These initiatives enable us to address several important strategic priorities for HCP, including reducing our Brookdale concentration, improving the lease coverage of our triple-net senior housing portfolio and diversifying our operator relationships. We are delighted to have reached a positive outcome on these high priority initiatives and look forward to continuing to strengthen our partnership with Brookdale, the largest senior housing operator in the country."
Strategic Benefits (upon completing the Brookdale transactions ("Transactions") outlined above):
The closing of the Transactions is expected to occur in various stages by the end of 2017, but remain subject to regulatory approvals and the satisfaction of other customary closing conditions, and may not close on the anticipated timeline or at all.
HCP, Inc. is a fully integrated real estate investment trust (REIT) that invests primarily in real estate serving the healthcare industry in the United States. HCP owns a large-scale portfolio diversified across multiple sectors, led by senior housing, life science and medical office. Recognized as a global leader in sustainability, HCP has been a publicly-traded company since 1985 and was the first healthcare REIT selected to the S&P 500 index. For more information regarding HCP, visit www.hcpi.com.
Statements in this release that are not historical factual statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, among other things, statements regarding our pending sale of communities leased to Brookdale and our use of the resulting proceeds, our other strategic initiatives discussed in this release, the anticipated closing or completion timeframes of the transactions, and the anticipated benefits and results of the transactions. All forward-looking statements are made as of the date hereof, are not guarantees of future performance and are subject to known and unknown risks, uncertainties, assumptions and other factors — many of which are out of our and our management's control and difficult to forecast — that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. These risks and uncertainties include but are not limited to: our ability to complete the transactions, or any of them, on the currently proposed terms or at all, including in respect of the satisfaction of closing conditions, the risk that any regulatory or other approvals required for the transactions are not obtained or are subject to unanticipated conditions, uncertainties as to the timing of the transactions; the risk that we may not be able to achieve the benefits of the transactions, or any of them, within expected time-frames or at all, or within expected cost projections; and other risks and uncertainties described from time to time in our Securities and Exchange Commission filings. We caution investors not to place undue reliance on any forward-looking statements. We assume no, and hereby disclaim any, obligation to update any forward-looking statements as a result of new information or new or future developments, except as otherwise required by law.
Thomas M. Herzog
Executive Vice President and Chief Financial Officer
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/hcp-to-sell-a-portfolio-of-64-brookdale-communities-for-1125-billion-300354678.html
SOURCE HCPPR Newswire
Last updated on: 01/11/2016
PharmiWeb.com is Europe's leading industry-sponsored portal for the Pharmaceutical sector, providing the latest jobs, news, features and events listings.
The information provided on PharmiWeb.com is designed to support, not replace, the relationship that exists between a patient/site visitor and his/her physician.