Brookdale & HCP Complete Previously Disclosed Creation of $1.2 Billion CCRC Joint Venture & Amendment of Former Emeritus Leases
September 02 2014 - 8:00AM
Business Wire
Brookdale Senior Living (NYSE:BKD) and HCP (NYSE:HCP) today
announced the closing of their previously disclosed
multiple-element transaction, including: i) the creation of a $1.2
billion strategic joint venture initially owning a portfolio of 14
entry fee CCRCs, and ii) amendments to the triple-net leases on 202
HCP-owned senior housing communities formerly operated by Emeritus
Corporation, which was acquired by Brookdale in July 2014.
As previously announced, concurrent with the closing, HCP
invested $324 million of cash into the CCRC joint venture, which
was used to acquire four communities representing four of the 14
campuses that initially constitute the venture. Brookdale will
continue to manage the communities in the CCRC portfolio.
Andy Smith, Brookdale’s Chief Executive Officer, said, “We are
very excited about broadening our relationship with HCP through
both the merger with Emeritus and this transaction, which creates
attractive opportunities to build shareholder value for Brookdale
and HCP. Working together, we expect the entry fee CCRC joint
venture to become a pre-eminent owner and operator of first-class
entry-fee communities. In addition, the modifications to the
Emeritus leases, including the creation of a 49-community RIDEA
joint venture, are expected to improve the benefits of our merger
by increasing accretion and reducing lease leverage. We appreciate
the creativity and collaboration of Lauralee and the HCP team to
effect this next step in building our relationship.”
“I would like to congratulate the Brookdale and Emeritus teams
again for completing their transformational merger,” said Lauralee
Martin, President and CEO of HCP. “Brookdale has been a terrific
long-term partner to HCP, and we are delighted to have strengthened
and expanded our relationship with this best-in-class operator.
This transaction results in improved lease coverage, the
elimination of purchase options and two new joint venture platforms
with significant growth potential. We look forward to continuing to
expand our relationship with Andy and his team.”
ABOUT BROOKDALE SENIOR LIVING
Brookdale Senior Living Inc. is the leading operator of senior
living communities throughout the United States. The Company is
committed to providing senior living solutions primarily within
properties that are designed, purpose-built and operated to provide
the highest-quality service, care and living accommodations for
residents. Currently Brookdale operates independent living,
assisted living, and dementia-care communities and continuing care
retirement centers, with approximately 1,150 communities in 46
states and the ability to serve over 110,000 residents. Through its
ancillary services program, the Company also offers a range of
outpatient therapy, home health, personalized living and hospice
services.
ABOUT HCP
HCP, Inc. is a fully integrated real estate investment trust
(REIT) that invests primarily in real estate serving the healthcare
industry in the United States. HCP’s portfolio of assets is
diversified among five distinct sectors: senior housing,
post-acute/skilled nursing, life science, medical office and
hospital. A publicly traded company since 1985, HCP: (i) was the
first healthcare REIT selected to the S&P 500 index; (ii) has
increased its dividend per share for 29 consecutive years; (iii) is
the only REIT included in the S&P 500 Dividend Aristocrats
index; and (iv) is a global leader in sustainability as a member of
the CDP, Dow Jones and FTSE4Good sustainability leadership indices,
and the Global and North American healthcare sector leader for
GRESB. For more information regarding HCP, visit the Company’s
website at www.hcpi.com.
FORWARD-LOOKING STATEMENTS
Certain items in this release may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements include, among other things,
statements regarding anticipated outcomes relating to the CCRC
joint venture and the Brookdale and Emeritus merger transaction and
the potential benefits of an expanded relationship and joint
ventures between HCP and Brookdale. These statements are made as of
the date hereof, are not guarantees of future performance and are
subject to known and unknown risks, uncertainties, assumptions and
other factors — many of which are out of HCP’s, Brookdale’s and
their respective management’s control and difficult to forecast —
that could cause actual results to differ materially from those set
forth in or implied by such forward-looking statements. These risks
and uncertainties include but are not limited to: the risk that
either HCP or Brookdale may not be able to achieve the benefits of
the transactions described above within expected time-frames or
within expected cost projections; and other risks and uncertainties
described from time to time in HCP’s and Brookdale’s Securities and
Exchange Commission filings, including each of HCP’s and
Brookdale’s Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q. Neither HCP nor Brookdale assumes, and each hereby
expressly disclaims any, obligation to update any of the foregoing
or any other forward-looking statements as a result of new
information or new or future developments, except as otherwise
required by law.
Brookdale Senior Living Inc.Investors: Ross Roadman,
615-564-8104rroadman@brookdale.comorMedia: Julie Davis,
615-564-8225jkdavis@brookdale.comorHCP, Inc.Timothy M.
Schoen, 949-407-0400Executive Vice President & Chief Financial
Officerinvestorrelations@hcpi.com
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