Omega Healthcare's Big Transaction
November 17, 2009
Omega will also have an option to acquire an additional 63 leased facilities with 6,529 beds for $295.2 million ($45,200 per bed) any time through December 31, 2011. The current yield on these is about 11.5%. These series of transactions are a huge statement by Omega on its confidence in the future of the skilled nursing business and the particular tenants in these properties, who were not named. It also represents a big step for CapitalSource, which had been trying to wind down its REIT operations so it could concentrate on its bank lending business. As part of the announcement, CapitalSource also disclosed that Jim Pieczynski will become co-CEO of the company along with Steven Museles, while John Delaney will become Executive Chairman.