Seniors Housing Weekly Update - NorthStar Realty Wins Griffin-American Healthcare REIT bid

August 5, 2014

 

August 5, 2014. 60 Seconds with Steve Monroe. NorthStar Realty has agreed to pay $4.0 billion for Griffin-American Healthcare REIT II....

NorthStar Realty Wins Griffin-American Healthcare REIT bid

At long last, Griffin-American Healthcare REIT II has announced that NorthStar Realty Finance was the winning bidder, as expected since they entered into exclusive talks several weeks ago. The surprise was the price, which came in at $4.0 billion, or $11.50 per Griffin-American share and a little higher than the $3.7 billion that had been bandied about. While we know that Health Care REIT would never have paid that much, it is difficult to derive any valuation intelligence because the REIT is made up of mostly medical office buildings with more than 3.5 million square feet, plus a half dozen senior care portfolios with 2.7 million square feet, excluding the UK portfolio. A few hospitals are in there as well. At least the saga is over, and it was worth the wait to get a few hundred million more in value for the selling shareholders. And it was worth the wait for Emeritus shareholders, which closed on the sale to Brookdale Senior Living last week. With more than 1,100 properties, Brookdale is the largest provider in the world by a factor of three, and we wish them success in the integration and future performance.  

 

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