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| Senior housing file photo. This property is not associated with the UK Senior Housing Portfolio described below. |
NEWPORT BEACH, CA (Sept. 12, 2013) – Griffin-American
Healthcare REIT II, Inc. announced today that it has completed the acquisition
of a 44-facility portfolio of premium senior housing and care facilities
located in England, Scotland and the Channel Island of Jersey from Myriad
Healthcare Limited for £298.5 million (approximately $472.2 million).
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| Jeff Hanson |
The majority of the
portfolio, known as the UK Senior Housing Portfolio, is concentrated in
England’s affluent South East region, primarily in the Home Counties around
Greater London, with additional locations near Birmingham, Bristol and Oxford.
The Scottish
component of the portfolio is comprised of six facilities located in affluent
areas north of Edinburgh, while two facilities are located in Jersey.
Approximately 52 percent of the portfolio’s
year-end 2012 revenue was derived from private pay residents, significantly
higher than the UK national average of 32 percent, according to statistics
provided by the London School of Economics’ Personal Social Services Research
Unit.
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| Paul A. Jeffrey |
“With the completion
of this acquisition, Griffin-American Healthcare REIT II has added a
significant international presence to our already extensive national
footprint,” said Jeff Hanson, chairman and chief executive officer.
“Griffin-American Healthcare REIT II is now
one of the best diversified healthcare REITs in the country in terms of
geography, revenue sources and asset types with a portfolio valued at
approximately $2.1 billion, based on aggregate acquisition price.”
Under the terms of
the transaction agreements, the UK portfolio is leased to Myriad Healthcare
Limited, operating as Caring Homes, under 35-year absolute net leases with
annual rent escalations. Myriad
Healthcare Limited, an unaffiliated third party, was represented by Tim
Edghill, Joe Guilfoyle and John Gladstone of Jones Lang LaSalle.
Paul Jeffery,
CEO of Myriad Healthcare Limited, said: “This is a transformational event for
our company with a partner as committed to growth in the private pay market as
we are. We have built our success by
providing high-quality care for elderly residents in the UK in first-rate
facilities and locations. This
partnership allows us to continue to execute this strategy and expand our
footprint in the UK’s growing private pay elderly care sector.”
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| Danny Prosky |
“This investment partners Griffin-American Healthcare REIT
II with one of the UK’s leading operators of senior care communities and
broadens our investment strategy internationally,” said Danny Prosky,
president and chief operating officer of the REIT.
“Similar to that of the United States, the population of the
United Kingdom is rapidly aging, creating greater demand for senior care. We are pleased to partner with one of the
UK’s premier operators in the field and to further expand our portfolio in this
attractive sector and market.”
The UK Senior
Housing Portfolio adds approximately 962,000 square feet and 2,550 beds to the
portfolio of Griffin-American Healthcare REIT II, which currently totals 223
buildings acquired for approximately $2.1 billion, diversified across 28
states, the United Kingdom and all four clinical asset classes: medical office
buildings, skilled nursing facilities, hospitals and senior housing.
Since Jan. 1, 2012, the portfolio has grown by more than 378
percent, based on purchase price. As of June 30, 2013, the Griffin-American
Healthcare REIT II property portfolio was 96 percent leased with a weighted
average remaining lease term of 8.7 years and leverage (total debt divided by
total assets) of 17.6 percent.
Griffin-American Healthcare REIT II financed the acquisition
using cash on hand.
For a complete copy of the company’s news release, please
contact:
Damon Elder
(949) 270-9207
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