Ventas (VTR) Announces Completion of Wexford Assets Acquisition; Sees Immediate Accretion
- Apple (AAPL) Tops Q4 EPS by 2c; Issues Solid Outlook
- Wall Street slips on earnings; Apple falls late after results
- Chipotle Mexican Grill (CMG) Posts Q3 EPS of $0.27; Comps Miss Views; Additional Stock Buyback Approved
- Pandora (P) Misses Q3 EPS by 1c, Q4 Revenue Guidance Falls Short
- After-Hours Movers 10/25: (OGXI) (AKAM) (VRTX) Higher; (EW) (NUVA) (CMG) (AAPL) Lower (more...)
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Ventas, Inc. (NYSE: VTR) announced that it has completed its previously announced acquisition of substantially all of the life science and medical real estate assets of Wexford Science & Technology, LLC (“Wexford”) from affiliates of Blackstone Real Estate Partners VIII L.P. for $1.5 billion in cash.
“We are pleased to complete this accretive transaction, which marks Ventas’s entry into the attractive life science business and provides even more diversified, reliable income and growth for our shareholders,” said Ventas Chairman and Chief Executive Officer Debra A. Cafaro. “With attractive real estate leased by top universities, academic medical centers and research companies, and a strategic partnership with leading developer Wexford, the transaction adds high quality properties and establishes a new platform for growth. With Wexford’s portfolio, we are further solidifying Ventas’s position as the leading capital provider at the intersection of healthcare and real estate.”
The acquired portfolio includes 23 operating properties that contain 4.1 million square feet, are 97 percent leased and represent a 2017 cash yield of 6.8 percent. Ventas also acquired two development assets pre-leased to Duke University and Wake Forest University that are expected to produce a stabilized unlevered yield of approximately 7.5 percent. Finally, Ventas acquired nine development sites principally contiguous to existing assets, two of which present near term development opportunities.
Wexford will continue to manage the portfolio. As part of the acquisition, Ventas also entered into a long term management and pipeline agreement with Wexford, whereby Ventas will have exclusive rights to jointly develop future projects with Wexford, which will be independently owned and operated by its experienced, existing management team.
“We are delighted to partner with Ventas and we see great opportunities ahead as we continue to manage our existing high-quality portfolio,” said Jim Berens, President of Wexford. “The combination of Wexford’s development expertise and relationships together with Ventas’s financial strength and long-term commitment should enable us to serve our clients, develop exciting new projects and grow our business significantly.”
The transaction is expected to be immediately accretive to the Company’s normalized funds from operations (“FFO”) per share. The impact of the transaction is already reflected in the Company’s 2016 normalized FFO per share guidance range of $4.05 to $4.13 issued in its July 29, 2016 press release. Ventas funded the transaction with $736 million in equity raised in July 2016, cash on hand and draws on its revolving credit facility.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- PRGX Global (PRGX) to Acquire SaaS P2P SIM Service Provider Lavante
- JetBlue Airways (JBLU) Makes Minority Equity Investment in JetSuite
- Carlisle Cos. (CSL) Tops Q3 EPS by 5c
Create E-mail Alert Related CategoriesCorporate News, Management Comments, Mergers and Acquisitions
Related EntitiesDividend, Earnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!