US Healthcare Property Investor concludes Half-Billion Dollar Deal

Posted on 12 October, 2014 by Jodee Redmond

Maryland based real estate investment trust Sabra Health Care, has acquired a portfolio of 21 independent living facilities from Holiday Acquisition Holdings.

friendly african female nurse greeting senior couple in hospital

The REIT paid $550 million in cash for the portfolio, which is made up of 2,850 units. It also ensured that the transition of ownership would proceed smoothly by signing a 15-year master lease agreement with Holiday AL Holdings L.P.

The properties have an occupancy level of 90.5 per cent and are located across 15 states. Six of the states represent new territories for Sabra and the new holdings range in size from 91-252 units and in age from 4-29 years.

Not only has Sabra’s geographic presence expanded, but the addition of the 21 independent living assets decreased the REIT’s exposure to skilled nursing and transitional care facilities.

These types of assets previously made up the vast majority of the REIT’s holdings, numbering 100 of its 130-property portfolio.

The Holiday portfolio also reduces the concentration of Sabra’s earned revenues from its leading tenant Genesis Healthcare from 46.8 per cent to 28.1 per cent.

Along with closing this latest acquisition, Sabra also expects to complete $100 million in sale/leaseback deals over the next two months.

According to a recent statement “(The) investments far exceed our prior expectations of $195 million in the second half of 2014 and should allay investor fears of slowing transaction pace.”




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants