Newcastle purchases senior portfolio for $1.01B


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.

Comments (1)
  • Michael Bryant
    , contributor
    Comments (7224) | Send Message
     
    Long (NCT). But isn't (NRZ) in the senior housing business, and (NCT) just a mREIT?
    24 Nov 2013, 09:14 PM Reply Like
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