NEWTON, Mass.--(BUSINESS WIRE)--
Senior Housing Properties Trust (Nasdaq: SNH) today announced that it
has formed a joint venture with a sovereign institutional investor to
own 11 Fan Pier and 50 Northern Avenue in Boston, MA. The investor will
contribute approximately $261 million for a 45% equity interest in the
new venture, and SNH will own the remaining 55% equity interest. The
investment amount is based on a property valuation of $1.2 billion, less
$620 million of existing secured debt on the property.
The property included in the joint venture was acquired by SNH in May
2014 for $1.125 billion and consists of two 15 story, class A LEED® Gold
Certified life-science buildings with structured parking located in
Boston’s Seaport District. The two buildings are 95% leased to Vertex
Pharmaceuticals, Inc. through 2028 and include 1.1 million rentable
square feet of lab, corporate office and street level retail space.
SNH expects to use the cash proceeds from this transaction to repay a
portion of the amounts outstanding under its revolving credit facility.
David Hegarty, President and Chief Operating Officer of SNH, made the
following statement about today’s announcement:
“We are pleased to announce SNH’s first joint venture transaction to own
property. This transaction highlights the increased value of these two
well located, well leased buildings since we acquired them less than
three years ago. This transaction also reduces our investment
portfolio’s concentration in this property and reduces our overall
leverage.”
SNH will continue to control this property because its partner in this
joint venture is a passive financial investor. Accordingly, SNH expects
to consolidate the operating results of this venture in its financial
statements and expects to account for the investor’s minority equity
interest in the venture as a non-controlling interest for financial
reporting purposes. SNH is also subject to a confidentiality agreement
and cannot disclose the identity of the investor that formed this joint
venture with SNH.
Eastdil Secured acted as SNH’s advisor and Sullivan & Worcester LLP
provided legal counsel to SNH in this transaction.
Senior Housing Properties Trust is a real estate investment trust, or
REIT, which owns senior living communities, medical office buildings and
wellness centers throughout the United States. SNH is managed by the
operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative
asset management company that is headquartered in Newton, MA.
WARNING CONCERNING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING
STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER SNH USES
WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”,
“ESTIMATE”, "WILL", “MAY” AND NEGATIVES OR DERIVATIVES OF THESE OR
SIMILAR EXPRESSIONS, SNH IS MAKING FORWARD LOOKING STATEMENTS. THESE
FORWARD LOOKING STATEMENTS ARE BASED UPON SNH’S PRESENT INTENT, BELIEFS
OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO
OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
CONTAINED IN OR IMPLIED BY SNH’S FORWARD LOOKING STATEMENTS AS A RESULT
OF VARIOUS FACTORS. FOR EXAMPLE, MR. HEGARTY STATES THAT THIS
TRANSACTION REDUCES SNH’S OVERALL LEVERAGE, WHICH MAY IMPLY THAT SNH’S
LEVERAGE WILL BE SUSTAINED AT THIS REDUCED LEVEL. HOWEVER, SNH HAS A
REVOLVING CREDIT FACILITY UNDER WHICH IT MAY BORROW, REPAY AND REBORROW
AMOUNTS AND IT MAY SEEK TO INCUR ADDITIONAL SOURCES OF INDEBTEDNESS IN
THE FUTURE. AS SUCH, SNH MAY NOT SUSTAIN ITS REDUCED LEVERAGE AND ITS
LEVERAGE MAY INCREASE IN THE FUTURE.
THE INFORMATION CONTAINED IN SNH’S FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER “RISK FACTORS” IN SNH’S
PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER IMPORTANT
FACTORS THAT COULD CAUSE SNH’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THOSE STATED IN OR IMPLIED BY SNH’S FORWARD LOOKING STATEMENTS. SNH’S
FILINGS WITH THE SEC ARE AVAILABLE ON THE SEC’S WEBSITE AT WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.
EXCEPT AS REQUIRED BY LAW, SNH DOES NOT INTEND TO UPDATE OR CHANGE ANY
FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS
OR OTHERWISE.
A Maryland Real Estate Investment Trust with transferable shares of
beneficial interest listed on the Nasdaq.
No shareholder, Trustee
or officer is personally liable for any act or obligation of the Trust.
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Source: Senior Housing Properties Trust