One Health Care REIT Buys Another

Health Care Property Investors, a Long Beach, Calif.-based real estate investment trust, is acquiring CNL Retirement Properties, an Orlando, Fla.-based health care REIT, for about $5.2 billion.This includes a payment of $13.50 per CNL common share, in the form of both cash and HCPI stock, and the assumption (or refinancing) of about $1.6 billion of CNL's debt, HCPI reported. CNL shareholders will receive $11.13 in cash and 0.0865 of an HCPI common share (valued at $2.27, based on HCPI's recent average stock price). The deal will create the nation's largest portfolio of independent- and assisted-living communities, health care facilities, and medical office buildings, comprising about 800 properties in 44 states, according to HCPI. "This transaction takes HCP to the next level and dramatically alters the health care real estate industry landscape," said James F. Flaherty III, chairman and chief executive of HCPI. "CNL Retirement Properties has the newest and most upscale portfolio in the industry, and it integrates well with our existing portfolio." The transaction is expected to close in the third quarter.