NHI to Buy Remaining Real Estate Stake in Bickford JV for $25.1M

by Jeff Shaw

MURFREESBORO, Tenn. — National Health Investors Inc. (NYSE: NHI), a healthcare REIT based in Murfreesboro, will acquire the remaining 15 percent real estate stake in its joint venture with Bickford Senior Living for $25.1 million. In return, Bickford will acquire NHI’s non-controlling 85 percent interest in the operations of the communities for $8.1 million.

The deal is part of the JV converting its lease structure from RIDEA to triple-net, where NHI will now own 100 percent of the real estate and Bickford will own 100 percent of the operations. The deal is expected to close before the end of the year.

While explaining the reason for the structural change, NHI president and CEO Eric Mendelsohn said “the new structure and financial impacts of this change will better position NHI for predictable cash flows and will help us maintain an active development pipeline.”

Under its current joint venture arrangement, NHI made cash distributions to Bickford of $2.3 million in 2015.

The number of seniors housing properties involved and their specific names were not disclosed.

The partnership announced a five-property seniors housing development pipeline in Illinois and Virginia in February 2015, with a planned opening for fall 2016 for all the communities. The new agreement will add a purchase option for those and all other planned communities. 

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