Ventas To Purchase Nationwide Health Properties for $7.4 Billion-Senior Housing Facilities

This acquisition makes for the largest healthcare REIT deal. Not only are we seeing acquisitions and mergers in the technology side of healthcare, but real estate seems to be the next big target area. One item for sure is that there are many of us baby boomers out there and companies seem to believe we will all need to be living in one of their facilities at some point in time, at least that’s the investor side. It was just back in December HCR Manor was purchased in another billion dollar deal, again this was the real estate side.

HCP Inc. To Pay Carlyle Group $6.1 billion for HCR ManorCare's Nursing Home Properties–Biggest Private Equity Deal of the Year

This combine a very large number of facilities and one has to wonder soon if a nursing home company in the future will actually maintain ownership of the real estate or is this becoming a “rental” or “lease” market. BD

In a deal that will create the largest health care REIT in the country, Ventas Inc. (NYSE: VTR) announced Feb. 28 that it is buying Nationwide Health Properties Inc. (NYSE: NHP).
Under the terms of the $7.4 billion transaction, Ventas will acquire all of Nationwide’s outstanding shares. The deal is scheduled to close in the third quarter of 2011.
Based in Chicago, Ventas has 602 healthcare related facilities in its portfolio in 44 states and two Canadian provinces. The company says that acquiring Nationwide Health Properties and its senior housing facilities will help it diversify.

The new transaction with Nationwide is Ventas’ seventh major deal in seven years. Once this deal is completed, Ventas will become the largest owner of senior housing in the United States with 643 assets. The combined company will have extensive relationships with more than 100 regional operators, tenants and managers.