Omega, Lindsay Goldberg JV Buys 64 Welltower Properties for $1.1B

by Jeff Shaw

HUNT VALLEY, Md. — Second Spring Healthcare Investments, a joint venture between private equity firm Lindsay Goldberg LLC and healthcare REIT Omega Healthcare Investors Inc. (NYSE: OHI), has acquired 64 properties from Welltower for $1.1 billion.

Welltower (NYSE: HCN) is the largest healthcare REIT in the United States by market cap, but recently updated its divestment goal for 2016 from $1.3 billion to $4.1 billion, meaning the company plans to sell $3.3 billion in properties before the end of the year.

The Second Spring JV is 85 percent owned by affiliates of Lindsay Goldberg and 15 percent owned by affiliates of Omega. Omega’s share of the acquisition was $50 million.

Following the sale, Second Spring leased the properties to subsidiaries of Genesis Healthcare, one of the largest skilled nursing operators in the country. The 15-year master lease features initial annual rent is $103.9 million with annual escalators of 1 percent after year one, 1.5 percent after year two and 2 percent thereafter.

Specifics on the properties involved in the sale were not released.

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