GE Healthcare Financial Services has bought six senior housing portfolios for $US1.4 billion from Alpharetta in the United States.
Alpharetta is part of Formational Capital, a company which invests in and provides services to the senior housing and care industry.
"We are excited to make a strong addition to our equity portfolio with a solid, long-term partner like Formation Capital," GE Healthcare Financial Services’ real estate finance senior managing director John Cobb said.
"We have been providing debt products to the long-term care industry for over 10 years. This acquisition of senior living facilities marks the largest to date for our healthcare real estate team and positions us as a strong player in the equity market. We look forward to increasing our investments in the long-term care market in the years ahead.” he added.
The combined acquired portfolios include 186 skilled nursing facilities and more than 21,000 beds, with an average occupancy rate of more than 90%.
Fifty percent of the assets are located in Florida while the remaining properties are diversified across 20 states, including Mich., N.C., Ohio, Ind., Mass., and Miss.
The transaction will bring GE Healthcare Financial Services’ real estate investments to over $US4 billion.
As the new owner of these facilities, GE Healthcare Financial Services plans to contract with Formation Capital to provide asset management services.
The individual properties will continue to be operated by their current providers under long-term leasing arrangements.
"This transaction is a prime example of why Formation Capital continues to work with GE Healthcare Financial Services," Formation Capital’s chief executive Arnold Whitman said.
"To finalize this agreement, we combined the financial expertise and resources of GE Healthcare Financial Services with our industry acumen and the operational excellence of some of the nation’s top operators. Together, we’ve formed a dynamic partnership and have positioned both of our organizations for continued growth,” Whitman added.
By Adam Parsons
