Three major players in the post-acute care market inked a $2.4 billion deal to join forces in delivering short-stay rehabilitation and therapy development projects.
Health Care REIT Inc. will acquire HealthLease Properties REIT, the capital development arm of Mainstreet, for $950 million. Additionally, Health Care REIT will acquire 17 of Mainstreet’s Next Generation properties currently under construction and enter into a development partnership with Mainstreet for 45 future projects, at a combined value of approximately $1.4 billion.
Identifying a need for post-acute care after hospital interventions and surgeries like cardiac events, strokes, and hip and knee replacements, Mainstreet’s Next Generation properties accommodate patient stays up to 30 days in hospitality-inspired settings.
Created as a platform to access capital for Mainstreet, HealthLease Properties has grown Mainstreet's portfolio from from $100 million in 2012 to today’s $950 million. Mainstreet will remain in real estate development.
The closing of the deal is subject to approval by the REIT’s unit holders as well as other customary closing conditions. The transaction, including the Mainstreet partnership, is anticipated to be completed in the fourth quarter of 2014.
