Health Care Deal News: Spotlight on Long-Term Care- June 2012

In May’s largest Long-Term Care Deal, Bristal Holdings is selling a portfolio of five seniors living communities in New York State. Bristal is jointly owned by Chartwell Seniors Housing REIT (TSX: CSH-UN) and ING Real Estate Australia Pty. The purchase price is approximately $290.0 million. All five facilities are located on Long Island; they have a combined total of 768 assisted living suites. The buyer is an entity owned by affiliates of Harrison Street Real Estate Capital, LLC and the Engel Burman Group, an affiliate of the current operator. Chartwell is selling its 50% interest to concentrate on its properties elsewhere. Meanwhile, this deal aligns the buyer’s interests as property manager with ownership interests. The sellers originally acquired the Bristal portfolio in early 2007 for $290.5 million. That they can get virtually the same price after adding five years to the age of the facilities and after the drubbing the Long-Term Care sector took during the intervening period is an indication of the high quality of the portfolio and the ability of the facilities to maintain their value.

In a sale-leaseback transaction CNL Lifestyle Properties is paying $79.8 million to acquire four senior housing communities in Georgia from Trinity Lifestyles Management II, LLC, an affiliate of Solomon Holdings III Dogwood Four, LLC. The four properties have a total of 347 units: 85 independent living units, 186 assisted living units and 76 memory care units. At the time of sale, they were 87.4% occupied. The acquisition of these properties from Solomon will expand CNL’s growing and diversified senior housing portfolio to 56 properties. Trinity Lifestyles Management will continue to manage the four properties under a 20-year lease: they are located in Fayetteville, Stockbridge, Gainesville and Alpharetta. Trinity is to receive a management fee of 5% of the revenue plus incentive management fees.

Covington Investments, LLC made an unsolicited bid to buy Advocat (NASDAQ: AVCA) for about $51.0 million. Covington is offering $8.50 per share, which.........Want to read more? Click here for a free trial to The Health Care M&A Information Source and download the current issue today