The spinoff of New Senior Investment Group (SNR) will leave Newcastle Investment (NCT) with its real estate debt and golf course businesses, says the company in a presentation.
By separating the senior housing operation, Newcastle management hopes SNR will attain a valuation closer to that of its peers (something it hoped the New Residential spin would do last year). Between properties already owned and those under contract, the senior housing portfolio is 99 properties and 12.4K beds, with 95% private-pay independent and assisted-living properties.
Post-spin, Newcastle will focus on managing its existing CDO, restructuring core golf operations, and maybe investing in distressed golf assets. The company will also eye other potential investments, with a primary focus on commercial real estate.
Previously: Newcastle to spin off Senior Housing business