In a stock and cash transaction valued at $4B, including about $600M in debt, NorthStar Realty Finance (NYSE:NRF) agrees to the purchase of Griffin-American Healthcare REIT.
The portfolio - mostly of medical office buildings and senior housing facilities in the U.S. and U.K. - is going for about a 6.4% cap rate based on estimated 2015 NOI, and the deal is expected to be neutral to NRF's CAD.
Terms: Griffin-American owners will receive $11.50 per share comprised of $7.75 in cash and $3.75 in NRF stock. The stock portion is subject to a collar based on the price of NRF shares.
The deal is expected to close in Q4.
A conference call to discuss is set for 11 ET.
Shares +7.2% premarket