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HCP
said the spinoff would allow it to focus on its core businesses
- senior housing, life science properties and medical offices -
and give it flexibility to invest in assets with limited
dependency on government reimbursement.
Skilled nursing facilities provide long-term care for patients
who have difficulty in regular day-to-day activities. These
services are covered under Medicare and Medicaid programs.
After the spinoff, HCP expects to have more than 860 properties,
generating annual portfolio income of about $1.4 billion, the
company said on Monday.
The new REIT will hold properties from HCP's HCR ManorCare unit
and some other nursing facilities. It is expected to have a
portfolio of more than 320 properties with estimated annual rent
of about $485 million.
Mark Ordan, who has joined HCP as senior adviser, will be the
chief executive of the new company.
Barclays and Morgan Stanley are HCP's financial advisers for the
spinoff. Paul, Weiss, Rifkind, Wharton & Garrison and Skadden,
Arps, Slate, Meagher & Flom are its legal advisers.
(Reporting by Amrutha Penumudi in Bengaluru; Editing by Kirti
Pandey)
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