Exclusive: ARC Healthcare Near $3.7
Billion Deal For Griffin-American Healthcare
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[May 17, 2014]
By Mike Stone and Soyoung Kim
NEW YORK (Reuters) - American Realty
Capital Healthcare Trust Inc is in exclusive talks to buy
Griffin-American Healthcare REIT II Inc, a deal that could value the
healthcare real-estate investment trust at around $3.7 billion,
according to people familiar with the matter.
American Realty Capital Healthcare Trust - known as ARC Healthcare
- is trying to finalize a purchase agreement in the next two weeks
with Irvine, California-based Griffin-American, which owns senior
housing and nursing facilities, hospitals, medical office buildings
and other medicine-related properties in the United States and
Britain, the people said.
Discussions between the two could still fall apart and
Griffin-American could turn to other bidders that remain interested
in buying the company, cautioned the people, who asked not to be
named because the matter is not public.
Spokesmen for Griffin-American and ARC Healthcare declined to
ARC Healthcare, which was created in 2011 as a non-traded REIT,
listed on the Nasdaq market in April this year and has a market
capitalization of $1.66 billion.
The company is led by executive chairman Nick Schorsch, who also
runs much larger American Realty Capital Properties Inc, which has a
market capitalization of just over $10 billion.
Under Schorsch, New York-based American Realty Capital Properties
(ARCP) has pursued major acquisitions in recent years, including
buying Cole Real Estate Investments Inc last year for about $7.2
billion to create the largest U.S. net-leased real estate investment
On Friday, ARCP also announced a $1.5 billion sale-leaseback
transaction for over 500 Red Lobster restaurant properties. In
April, the company ended advanced discussions to buy $5 billion real
estate financing company NorthStar Realty Finance Corp, Reuters
[to top of second column]
Griffin-American is a non-traded REIT, meaning that it must file its
financials publicly, but its shares do not trade on a stock
exchange. The enterprise value of Griffin-American is about $3.4
billion based on its recent quarterly filing with the U.S.
Securities and Exchange Commission.
The company has acquired a diverse portfolio of healthcare-related
real estate assets comprising medical office buildings, senior
housing facilities, hospitals and skilled nursing facilities.
Healthcare REITs have attracted investors hunting for higher yields
at a time when interest rates remain low and an aging population
boosts demand for senior care facilities and other medical-related
(Editing by Ken Wills)
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