Ventas Skilled Nursing Spinoff CCP Acquires Nine-Property Portfolio in Louisiana for $190M

by Jeff Shaw

SHREVEPORT, La. — Care Capital Properties Inc. (NYSE: CCP), the skilled nursing REIT that spun off from healthcare giant Ventas in August, has completed its first major transaction.

CCP acquired eight skilled nursing facilities and one assisted living facility, all located in Shreveport in northwest Louisiana near the Texas border, for $190 million. The seller was not disclosed.

The properties contain a total of 1,174 beds, with an average occupancy rate of approximately 88 percent.

The company immediately entered into a long-term, triple-net lease with Texas-based operator Senior Care Centers LLC (SCC) to operate the acquired portfolio. SCC concurrently acquired the portfolio’s operations, which include a rehabilitative therapy company, four hospice agencies and an interest in an affiliated pharmacy provider.

In conjunction with the acquisition, CCP made a $20 million five-year, fully amortizing loan to SCC. The initial cash lease yield on the properties is 8.25 percent, and the loan bears interest at a rate of LIBOR plus 5 percent, which escalates 25 basis points annually.

As a result of the transaction, SCC is expected to account for approximately 16 percent of CCP’s net operating income on a pro forma basis.

On Tuesday, CCP’s stock price closed at $30.87 per share, down from $34.04 when the company went public Aug. 18.

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