HCP to spin off skilled nursing, assisted living assets into REIT
(Reuters) - HCP Inc (HCP.N: Quote), a real estate investment trust (REIT) focused on healthcare, said it would spin off its skilled nursing and assisted living properties into a publicly-traded REIT.
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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