Newcastle purchases senior portfolio for $1.01B

|By:, SA News Editor

Pricing its 50.5M share secondary for gross proceeds of about $264.9M, Newcastle (NCT) investment announces the purchase of a 52-property senior housing portfolio from Holiday Acquisition for roughly $1.01B. Newcastle will put up about $300M and fund the rest through a non-recourse mortgage.

The portfolio has 5,885 units located across 24 states. It's 100% private pay with occupancy rate of 91%. Leases with affiliates of Holiday will have first-year rent equal to 6.5% of the purchase price.

Upon closing of this and other committed deals, Newcastle will have invested about $600M of equity in senior housing assets.

Press release - purchase

Shares -0.9% premarket after falling nearly 5% upon the offering announcement last night.