RE Companies Buying Health Care Portfolio

Nationwide Health Properties and Pacific Medical Buildings are acquiring a portfolio of 28 medical office buildings for up to $2 billion over a period of three years. The Newport Beach, Calif.-based Nationwide Health Properties, a real estate investment trust, said the transaction provides it with "a major presence in the medical office sector." The acquisitions are expected to add over two million square feet of medical office space to the NHP portfolio. The REIT said it expects to finance an acquisition of 16 properties closing in 2008 with a combination of $201 million in assumed debt, at 5.9%; at least $100 million in partnership units; and the remainder from a $305 million sale of properties. The partnership acquired seven properties for $120 million in the fourth quarter of 2007, NHP reported.