Select Page
Ventas $VTR REIT to Buy $1.5B Wexford SciTech Properties From @Blackstone $BX

Ventas $VTR REIT to Buy $1.5B Wexford SciTech Properties From @Blackstone $BX

Blackstone acquired Wexford parent Biomed Realty Trust (NYSE: BMR) in an $8 billion deal earlier this year. The Wexford sale comes within days after Blackstone Real Estate Partners VIII agreed to acquire seven West Coast office properties for $1.162 billion in cash from Houston-based Hines Real Estate Investment Trust, after which Hines REIT is being liquidated. “This acquisition and alliance with Wexford are a natural fit for Ventas, and reinforce our position as the premier provider of capital at the intersection of healthcare and real estate. We are excited to add these world class institutions and advantaged real estate to our portfolio,” said Ventas chairman and CEO Debra A. Cafaro. The portfolio includes 23 operating properties that contain 4.1 million square feet, are 97 percent leased and derive 73 percent of revenue from excellent credit tenants, including 11 universities with an average credit rating of Aa2, investment grade companies and public companies with an equity market capitalization exceeding $1 billion. It includes two development assets encompassing approximately 400,000 square feet, that are nearly 60 percent pre-leased and affiliated with Duke University and Wake Forest University. Ventas is also acquiring nine development sites principally contiguous to existing assets. Baltimore-based Wexford is a leading real estate development company focused exclusively on partnering with universities, academic medical centers and research companies. As part of the acquisition, Ventas will enter into a long-term management and pipeline agreement with Wexford, whereby Ventas will own the existing real estate portfolio, Ventas will have exclusive rights to jointly develop future projects with Wexford, and Wexford will continue to manage the portfolio. Wexford will be independently owned and operated by its experienced, existing management team. “Universities are reliable, consistent drivers of economic activity, resulting in high, sustainable portfolio occupancies,” said Jim Berens, president of Wexford. “We are delighted to have Ventas, the leader in healthcare real estate, as our strategic capital partner to continue growing a portfolio where there is cutting-edge, institutional-quality life science research to meet the needs of a growing and aging population.” J.P. Morgan Securities LLC is acting as financial advisor to Ventas, and Kirkland & Ellis LLP is acting as its legal counsel in connection with the transaction. Eastdil Secured group of Wells Fargo Securities LLC is acting as financial advisor to Blackstone, and Simpson Thacher & Bartlett LLP is acting as its legal counsel. Ventas Inc., an S&P 500 company, is the second-largest healthcare REIT by market value in the US. Its diverse portfolio of approximately 1,300 assets in the United States, Canada and the United Kingdom consists of seniors housing communities, medical office buildings, skilled nursing facilities, specialty hospitals and general acute care hospitals. Through its Lillibridge subsidiary, Ventas provides management, leasing, marketing, facility development and advisory services to highly rated hospitals and health systems throughout the United States. Blackstone is a global leader in real estate investing. The firm’s real estate business was founded in 1991 and has $92 billion in investor capital under management. The firm’s real estate portfolio includes hotel, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America. Major investments include Hilton Worldwide, Invitation Homes (single family homes), Logicor (pan-European logistics), SCP (Chinese shopping malls), and prime office buildings in the world’s major cities. Blackstone real estate also operates one of the leading real estate finance platforms, including management of the publicly traded Blackstone Mortgage Trust (BXMT).]]>

AR Capital's Healthcare Trust Seeking Strategic Options, Joins Wave of REITs For Sale

AR Capital's Healthcare Trust Seeking Strategic Options, Joins Wave of REITs For Sale

Healthcare Trust, Inc. (HTI), a publicly registered, non-traded real estate investment trust formerly operating as American Realty Capital Healthcare Trust II, Inc. (ARC HT II), said it has initiated a strategic review process “to identify, examine, and consider a range of strategic alternatives.” The REIT focuses primarily on healthcare-related assets including medical office buildings (MOBs), seniors housing, and other healthcare-related facilities. The company is in the process of engaging a leading real estate investment banking group as financial advisor, and has retained Gibson, Dunn & Crutcher LLP as special legal counsel in connection with the strategic review process. The move comes in the midst of a crowded field of REITs being put up for sale and exploring strategic options, including American Farmland Company (NYSE MKT: AFCO), AdCare Health Systems Inc. (NYSE MKT: ADK), KBS Legacy Partners Apartment REIT (non-traded), KBS Strategic Opportunity REIT (non-traded), Stratus Properties Inc. (NASDAQ: STRS), and InvenTrust Properties Corp. (non-traded, formerly Inland American), which announced the spin-off of its Highlands REIT Inc. two weeks ago. “The steps we are taking represent our commitment to maximize value to our shareholders over the long term,” said the company’s chairman Randolph Read. ARC HT II had completed a $2.1 billion non-listed public offering as of November 17, 2014, at an initial price per share of $25.00. On March 18, 2015 ARC HT II announced its intention to list its common stock on a national stock exchange under the symbol “HTI” with the assistance of its financial advisors, KeyBanc Capital Markets and RCS Capital, the investment banking and capital markets division of Realty Capital Securities, LLC. However, the listing failed to materialize. As of December 31, 2015, HIT owned an investment portfolio of 166 properties with 8.5 million sq. ft., consisting of 81 MOBs with a 91% occupancy rate, 58 senior housing properties, 20 post-acute care properties, 4 hospitals, 2 development properties and land, “with an aggregate gross asset value of $2.3 billion,” according to the company. As of Q4 2015, HIT listed total assets of $2.27 billion on its books. Based on its total number of 86.68 million shares outstanding as of February 29, 2016, Healthcare Trust’s latest net asset value per share of $22.27 would imply a total net asset value of $1.93 billion. HTI is advised,  and directly or indirectly owned and controlled by AR Capital LLC, AR GlobalHealthcare Trust Advisors LLC, and AR Global Investments LLC. New York-based powerhouse AR Capital, formerly operating as American Realty Capital, was co-founded in 2006 by Nicholas S. Schorsch and William M. Kahane. AR Global Investments LLC operates as a subsidiary of AR Capital LLC, a full service investment management firm providing advisory services to retail and institutional investors. AR Capital’s AR Global is one of the largest alternative asset managers in the world, with over $18 billion of real estate and loans under management. AR Global’s investment programs include net leased properties in the U.S. and Europe, and domestic strategies focused on healthcare real estate, hotels, retail shopping centers, and New York City office buildings, as well as both real estate loans and corporate credit. On November 9, 2015, private equity giant Apollo Global Management, LLC (NYSE: APO) and AR Capital, LLC announced that they have mutually agreed to terminate a planned transaction pursuant to which Apollo would have purchased for $378 million a controlling interest in newly formed AR Global Investments LLC, owning a majority of AR Capital’s asset management business. A week later, on November 16, 2015, AR Capital announced the suspension and acceptance of new subscriptions to certain of its current investment programs effective December 31, 2015, “as a result of regulatory and market uncertainty.” “Until there is greater clarity, we have decided to sit this one out,” said Kahane at the time, adding, “we do not intend to register any new product offerings nor pursue any of our existing offerings after December 31, 2015. Naturally, as the government’s position becomes clearer, we may reconsider our present posture on these issues.” AR Capital’s decision came within days after the state of Massachusetts charged Realty Capital Securities (RCS) with fraudulently securing proxy votes to support real estate deals sponsored by AR Capital, which is owned by Schorsch and Kahane. Photo: Nicholas “Nick” Schorsch, Chairman, CEO and Co-Founder of AR Capital, formerly American Realty Capital.]]>