CNL Healthcare Properties Inc., a publicly registered non-traded real estate investment trust, has sold a portfolio of 55 Class A healthcare facilities to Welltower Inc. (NYSE: WELL) for $1.25 billion.
“The sale of our 55 building, Class A medical office portfolio to Welltower represents a strong, early value realization step for CNL Healthcare Properties and our approximately 45,755 stockholders,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties. “This is the first sizeable transaction in our carefully orchestrated strategic alternatives process to provide liquidity to investors, and we are very pleased with the outcome.”
Net sales proceeds after closing costs, repayment of related debt, pro-rations and other adjustments was approximately $550 million. CNL Healthcare noted that the remaining proceeds, with board approval, could be used to rebalance corporate borrowings and make a special distribution to shareholders.
The company also entered into a new credit agreement with KeyBank National Association after paying off the portion of the credit facilities related to the 55 properties. The new credit agreement provides for a $265 million senior unsecured term loan facility and a $250 million senior unsecured revolving credit facility.
CNL Healthcare Properties closed its offering in September 2015 after raising more than $1.7 billion in investor equity. The company’s portfolio now comprises 83 properties, 11 of which are acute and post-acute care assets that are marked as held for sale.